SPY Technical Analysis for Wednesday August 30, 2023
Key Support Levels for SPY Bulls: 443.40 - 445.50 and 441.30 - 442.65
U.S. Job Openings Hit Two-Year Low; Consumer Confidence Declines
Following supportive economic data hinting at the Federal Reserve's tapering of its tightening measures, stocks reached a peak since June, and bond yields fell. The S&P 500 closed near 4,500 with 90% of its companies growing. Nasdaq 100 rose 2%, boosted by Tesla and Nvidia. Two-year Treasury yields dropped 17 basis points to 4.9%.
The first U.S. Bitcoin ETF became feasible due to a court ruling, pushing the cryptocurrency market higher. Grayscale Bitcoin Trust surged 17%, Coinbase led sector gains, and the largest digital token rose 7%.
Swap agreements signaled reduced odds of a 2023 Fed rate hike, shifting expectations for policy changes to H1 2024. Traders now see a 56% chance of a quarter-point rate hike in November, down from 75%.
U.S. job openings fell more than expected to 8.83 million, a two-year low, indicating weaker labor demand. Other data showed declining consumer confidence due to worsening job prospects, rising borrowing costs, and ongoing inflation.1
SPY Breakouts of H1 Rectanlge and Exceed 448.11 (week of August 14th high)
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