Markets Push Higher Through Volatility 

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Alex Partida

Dec 08th 2022  .  3 min read

Markets Push Higher Through Volatility 

Before the opening bell for the cash session at 8:30 a.m. Eastern, The U.S. Initial Jobless Claims and U.S. Continuing Jobless Claims Reports released their data. The Initial Jobless Claims Report came in as expected, 5,000 higher than the previous report of 225k. The market’s reaction to this report was mixed as S&P 500 futures modestly pushed higher, only to stall at the 21-day exponential moving average (EMA). After this initial move higher, sellers took over briefly before the market open.

When the opening bell sounded, selling pressure resumed, pushing the markets to make a low on the day at 3,940 on the S&P 500 futures. This level proved to be an area of strong support, as buyers immediately stepped in, causing the market to rally 35 points off the lows, straight to 3,977. This 35-point range would be where the markets traded for the remainder of the session. Price action like this is to be expected when markets are trading under the daily mean, which proves to be an area of strong overhead resistance. 

Critical level in the market

The line in the sand for the market will continue to be the daily mean at 3,964 on the S&P 500 futures. This level will likely act as a magnet heading into the U.S. Consumer Price Index (CPI) and Federal Reserve (Fed) decision on rate hikes on Dec. 13 and 14, respectively. 

More economic data on Friday

Tomorrow, before the cash session, the Producer Price Index (PPI) will release numbers at 8:30 a.m. Eastern. The median forecast for this report is 0.2%, which remains unchanged.

Later in the trading session, the University of Michigan (Umich) Consumer Sentiment Index will be reported at 10 a.m. Eastern. This Umich report is expected to be 56.5, 0.3 lower than the previous data set. This survey is a good gauge of consumer sentiment on the current economy, personal finances, and business conditions. For this report, 100 is the baseline, set back in 1985. Anything less than 100 means the average consumer has less confidence in the economy. If consumers are more optimistic, it will be indicated by a number higher than 100.

Markets make modest gains to end the day

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 closed up 0.77%, gaining 30 points, while the Nasdaq closed up 1.11%, an increase of 122 points. The Dow Jones followed, closing up 0.55%, adding 183 points.

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