SPDR S&P 500 ETF Trust (SPY) Looking for a Breakout Above 400 USD?

Stocks within Wall Street have witnessed a surge following the optimist Consumer Price Index (CPI) data release. Major market indexes including Dow Jones (DJI), S&P 500 (INX), NASDAQ (IXIC), etc. enjoyed the good omen. SPDR S&P 500 ETF Trust (SPY), trades on NYSE Arca, also surged during the similar timeframe.

SPDR S&P 500 ETF Trust (SPY) stock started with a bullish pace sustaining 1.5% gain in the initial two days—Monday and Tuesday. Following day, the ETF witnessed another impressive jump making with the trading price surge up to 2%.

On Thursday, SPY witnessed a steep jump from around 374 USD, at the time of market opening, to over 394 USD by the end of the day—more than 5% surge in a day. The week ended with SPY trading above the level and closed the week with over 398 USD.

On Monday, 14th November 2022, New York Federal Reserves said to release its October Survey of Consumer Expectations. So it did. The inflation expectations remained higher than the September month’s numbers.

Survey reported 1 year, 3 years and 5 years expectations for inflation. In September, the one year estimate was 5.4% which was up from 5.7% in August. While the three year estimate was 2.8% in August and increased to 2.9% in September. Lastly, the five year inflation expectation in August was 2% which rose to 2.2% in September.

October Survey of Consumer Expectations revealed the one year inflation expectation up to 5.9%, 3.1% in three years and 2.4% in five years. All the three estimates remained higher than the previous month’s.

SPY opened this week for around 396 USD. It was expected to show some growth following the inflation expectations release. The ETF reached over 400 USD during the day and closed the day at 395.12 USD.

The government data releases play a significant role in affecting the market conditions.

In addition, there are other data dates to launch this week. For instance, on 16th November 2022, the Commerce Department is expected to launch US retail and food services sales numbers. On 17th November 2022, the US Department of Labor is expected to release initial jobless claims.

What Chart Has to Say About it?

source – TradingView

SPDR reaches the next round level of 400 USD, bears try to maintain this level as a resistance. At the same point, Fib retracement placed at its 0.382 level, therefore buyers often fail to propel prices higher above this level. Notably, the 200 DMA stays higher than the current price and sellers are waiting to dump assets at this level. In addition, RSI favors bulls as it is present at the 59 mark, showing a bullish trend.

Disclaimer

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