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Technical Support Threatened After Fed Disappoints

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Weakness ahead of the bell after yesterday’s FOMC announcement failed to impress. While the Fed will look to spur the economy with low interest rates through 2023, investors seem to want more support, either in the form of QE or stimulus.

Perhaps the Fed will eventually look to the Bank of England, who announced this morning that they will look to move to negative rates.

Equity futures are trading lower and look to test important technical support. The 50-day moving average in the S&P has held twice this month, but we could see it fail today. The level to watch is 3335 and a move under that area could trigger aggressive selling.

S&P Futures Trading Levels

The S&P futures currently sit at 3340, which is 30 handles off the overnight low.

Support levels for the day will be 3324 and 3300.

Upside resistance is 3350 and 3365.

The current S&P trading environment has been a sideways chop. The 50-day MA has offered support just above 3300, while the 21-day MA has been resistance under 3420. 

Three Stocks to Watch

AMZN- The stock will threaten to crack the 3000 level this morning after breaking the 50-day MA this week. The bulls might want to let this one come in to the $2750-2800 area. For those with a lot of patience, the 200-day is $2404

SNOW- The big IPO had a very successful debut yesterday, but there is a serious question on valuation. The stock soared over $300 after it opened, but is now trading under $250 pre-market.

TSLA– After bouncing almost 50% from last weeks lows, the stock is looking weak this morning, down over 3%. The stock will likely look to test some support, with the first level at the 21-day MA at $414.  

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