S&P 500 Has Noisy Day

The S&P 500 has had a very volatile in Rocky day during the trading session on Thursday as traders continue to ponder exactly what it is the Federal Reserve is going to do. That being said, the market is likely to continue seeing a lot of noisy behavior, and volatility should be picking up in general as fears of a tightening cycle will almost certainly weigh upon any type of risk-taking.

S&P 500 Video 14.01.22

Furthermore, the mixed signals from inflationary numbers between the CPI and the PPI probably have a lot of people very confused as well. That being said, the market will more than likely continue to be noisy and therefore the most important thing you can do is keep your position size reasonable. After all, in an environment like this you can lose a lot of money really quickly if you are not careful. Because of this, I think that a neutral position is probably the best one, or if you have the ability to trade this market via the SPY or even options, that might be the best way to go as risk appetite seems to be all over the place right now.

If the Federal Reserve is in fact getting ready to make some type of policy mistake, that it is worth keeping an eye on this index because it will almost certainly take a nosedive. To the upside, we have the 4800 level which of course is going to offer a certain amount of interest as well, mainly due to the fact that we have seen so much in the way of resistance in that area.

For a look at all of today’s economic events, check out our economic calendar.