SPY Technical Analysis for Wednesday August 09, 2023
Potential Bull Break if 449.96 - 450.68 Gap Is Overcome; Bearish If Gap Holds
I’m working on cleaning up my charts for NQ and ES and will include these charts in my next analysis since I have been traveling this week and will be home tomorrow. NQ and ES will be included daily. I will also provide weekly charts for TSLA and AAPL.
Central Bank Officials Weigh in on Interest Rates; Harker Signals Pause, Barkin Undecided on September Increase
Stocks rebounded from session lows, driven by concerns over the financial system and economy, as buyers moved in. The S&P 500 mostly recovered from a 1% drop, with Apple ending its losing streak and Eli Lilly boosting healthcare gains due to successful weight-loss treatment sales. Ten small and midsize American banks were downgraded by Moody's, sparking a decline in the banking sector.
Treasury 10-year yields fell to about 4%, and the bond market is preparing for the largest refunding auctions since last year, with a $42 billion three-year notes sale indicating stronger-than-expected demand.
Investors are considering comments from central bank officials in anticipation of a crucial inflation report. Fed Bank of Philadelphia President Patrick Harker suggested that interest rate hikes might pause, maintaining current high levels, with potential decreases likely next year. His Richmond counterpart, Thomas Barkin, deemed it premature to decide on a possible September increase.
Economic Events for August 9: Mortgage Applications Data, EIA Crude Oil Stocks Change, and 10-Year Note Auction
On Wednesday, August 9, the economic agenda will begin with the release of the MBA Mortgage Applications for the week ending August 4 at 07:00, with the previous figure showing a decrease of 3%. Following that, at 10:30, the EIA Crude Oil Stocks Change will be announced for the same date, with the consensus indicating a minor decline of 0.233 million barrels, a substantial change from the prior reduction of 17.049 million barrels. The day will conclude with the 10-Year Note Auction at 13:00, the last of which yielded 3.85%.
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