Fed Speak Keeps Market Stagnant 

Fed Speak Keeps Market Stagnant 

After a highly volatile ending to the previous trading session, the overnight futures session found calmness. The first Federal Reserve (Fed) speaker took the mic at 9:15 a.m. During the first speech of the day, more reiteration of Fed Chairman Jerome Powell’s comments took place by John Williams. Due to the lack of new information in the market, stagnation remained. 

Slow Start Leads to Slow Roll

At the opening of the market, the Nasdaq showed a stronger performance compared to the Dow Jones. Three leading technology companies, Microsoft Corp (MSFT), Tesla Motor Company (TSLA), and Nvidia (NVDA), drove the technology sector higher. Meanwhile, the Dow Jones saw some weakness, leading the S&P 500 futures to maintain a sideways trend.

As the market continued to trade sideways, some important levels were starting to come into play. The elevated Point of Control (POC) level of 4,153, as well as the psychological impact of 1,150, made for a significant area of potential support. However, when the S&P 500 futures broke down, the selling persisted and pushed the market back towards 4,100. Despite the downward momentum, there wasn’t enough selling volume in the market to reach the major support level. As the market remains in this range, traders and investors will be closely monitoring these key levels.

Important Levels for the Week Remaining

On the upside, the next significant level of resistance is 4,153, which was previously mentioned as the POC. A move above 4,153 would suggest a potential move toward the recent high of 4,200. The key factor to watch for is the market’s reaction at 4,153. A strong move above this level would confirm further buying, while a failure to break 4,153 would suggest market indecision and a potential return to the 4,100 level. Regardless of the market’s direction, monitoring these key levels will provide important information on market sentiment and potential future moves.

As the market waits for the next catalyst, traders and investors should keep a close eye on the key levels of 4,100 and 4,180. A break of either level could determine the direction of the market for the rest of the week and into next week’s key U.S. Consumer Price Index (CPI) report. Until then, the market may experience some chop within the range, but a clear path could emerge as more information becomes available. 

Next Week Holds a Major Catalyst

Tomorrow, the Continuing and Initial Jobless Claims data will be released at 8:30 a.m. Eastern. Last week, this report sent shockwaves through the market as the number was surprisingly high. There is a current median forecast of 190,000 for the report. 

The Market Slowly Grinds Lower

The Nasdaq and the S&P 500 were negative to close the session. The S&P 500 futures closed down 1.15%, losing 48 points, while the Nasdaq futures closed down 1.90%, falling 241 points. The Dow Jones futures followed, closing down 0.66%, a loss of 229 points.