SPY Chart done on hourly timeframe. The Federal Reserve sent markets higher last week after announcing their plan to lower interest rates by 75 basis point in 2024. The unexpected announcement caused a rally in global equities as it signaled that The Fed have “defeated” inflation and were successful in their economic soft-landing plan. Last week’s CPI data reinforced their decision by showing inflation reading at 3.1% compared to 3.2% the month prior. This week’s PCE report, which is The Fed’s preferred inflation gauge, will also give markets an update on inflation. October’s reading was 3.0%, so a reading below 3.0% for November will help boost markets as it will be closer to The Fed’s overall target of 2.0%. Retail...
SPY Chart done on hourly timeframe. What seemed impossible not too long ago is transpiring in the market as indexes head to their sixth week of consecutive gains. Buyers have propelled stocks to new 2023 highs, some even to new all time highs, but this week will be a big test as the final Fed meeting of the year is set to take place. The two day FOMC meeting is set for this Tuesday and Wednesday, The Fed will give an update on their stance on monetary policy and interest rates. According their most recent Beige Book Report, members of The Fed are all in agreement that their interest rate decisions will be based on economic reports and ongoing developments....
SPY Technical Analysis & Weekly Stock Market Update Markets roared higher last week, extending their already impressive November rally into the first week of December. The spotlight was around small cap stocks as capital rotated out of select large cap names and into stocks within the Russell 2000 index (IWM), which has lagged behind the S&P 500 and The Dow in 2023. Traders and investors are always quick to buy large cap and fundamentally strong companies during market rebounds, but eventually, as these companies reach overbought levels, savvy traders turn to different areas of the market where capital hasn’t flowed yet. We’re expecting this kind of capital rotation to continue through the end of 2023 and into 2024, many stocks...
SPY Normal trading is back in full swing this week after last week’s shortened holiday schedule. Despite last week’s low trading volume and momentum, traders managed to hold the markets near their recent highs, maintaining the overall bullish trend. There are some key events and reports expected this week that will test the strength of the bulls at these highs, the most important being the Personal Consumption Expenditures (PCE) report. The PCE index will provide markets with the latest inflation numbers like the CPI did a few weeks ago, but this is more important because it is The Fed’s preferred inflation gauge. The Fed is expected to hold their FOMC meeting in about two weeks, so the results of The...
SPY Chart done on hourly timeframe. The stock market posted its third consecutive positive week last week after a better than expected inflation report. The Consumer Price Index (CPI) reflected consumer prices rose 3.2% in October, decreasing from the 3.7% in the previous month. Market were alleviated to see inflation moving closer to The Fed’s 2% target rate as it could mean no further interest rate hikes are necessary. Apart from inflation data, there were several retail related reports last week, including earnings from Target, Walmart, and Home Depot. Earnings from these big-box retailers were positive, but their forward guidance was mixed, citing weaker than expected consumer spending activity. Their comments were reinforced by the monthly retail sales report, which...
