The SPY Drops As Traders Price In A Hawkish Tone From Powell Friday Amid Strong Jobs Data: A Technical Analysis
Portfolio Pulse from Melanie Schaffer
The SPDR S&P 500 (NYSE:SPY) experienced a drop due to selling pressure after Nvidia Corporation's Q2 earnings beat. Traders are anticipating a hawkish tone from Federal Reserve chair Jerome Powell at the Jackson Hole Symposium, which may indicate continued interest rate hikes. The SPY is trading in a possible bear flag pattern, suggesting increased market volatility. Traders can trade this volatility with options such as the ConvexityShares Daily 1x SPIKES Futures ETF (NYSE:SPKX) and ProShares Ultra VIX Short Term Futures ETF (NYSE:UVXY).
August 24, 2023 | 4:28 pm
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NEGATIVE IMPACT
SPY experienced a drop due to selling pressure and anticipation of hawkish tone from Fed chair. It's trading in a possible bear flag pattern, suggesting increased market volatility.
The anticipation of a hawkish tone from the Federal Reserve chair and the strong jobs data have led to a drop in SPY. The ETF is trading in a bear flag pattern, indicating potential further drops.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
SPKX is a potential option for traders to trade the expected volatility in the market.
As SPY is expected to experience increased volatility, traders may look to SPKX as an option to trade this volatility, potentially leading to increased interest in SPKX.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
UVXY is another potential option for traders to trade the expected volatility in the market.
As SPY is expected to experience increased volatility, traders may look to UVXY as an option to trade this volatility, potentially leading to increased interest in UVXY.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60