S&P 500 (SPY) Rebounds Towards The 4,150 Level

Key Insights

• Stock traders enjoyed a technical rebound today. 
• It was a rather slow day as traders were waiting for the Jackson Hole Symposium, which starts tomorrow. 
• Peloton stock jumped after the company launched products in Amazon’s U.S. stores. 

S&P 500 Moves Higher Ahead Of The Jackson Hole Symposium

S&P 500 gained some ground and moved towards the 4,150 level as traders scooped up shares after the recent strong sell-off. The rebound was broad, and most market segments moved higher today.

The breadth of the upside move highlights the technical nature of this rebound. There were no specific catalysts for the move.

The rebound was not strong as traders were not ready to make big moves ahead of the Jackson Hole Symposium, which starts tomorrow.

The news from Jackson Hole will have a significant impact on markets, so traders should be prepared for volatility in the remaining trading sessions of the week.

From a technical point of view, S&P 500 has once again failed to settle above the 20 EMA, which remains a significant resistance level. S&P 500 must get above this level to have a chance to gain sustainable upside momentum.

On the support side, the 50 EMA at 4080 should serve as the main support level for S&P 500. A move below this level will signal that S&P 500 may be ready to start a new downside trend.

Energy Stocks Stay Strong As WTI Oil Moves To New Highs

WTI oil rebounded from session lows and gained upside momentum, which was bullish for leading energy stocks like Exxon Mobil and Chevron.

Peloton stock gained 20% today after the company announced that it would launch products, apparel and accessories in Amazon’s U.S. stores. Peloton is scheduled to report earnings on August 25, before market open, so the stock will remain volatile tomorrow.

Bed Bath & Beyond stock was up by 18% as a WSJ report indicated that it had secured a loan deal. There are many traders who are underwater in this stock after its fast rally to the $30 level and the subsequent pullback towards the $8.50 level, so such traders may use the rebound to get out of their positions. Thus, it remains to be seen whether Bed Bath & Beyond will be able to gain additional upside momentum in the upcoming trading sessions.

Among losers, Nordstrom stock was down by 20% after the company released a disappointing quarterly report and lowered its guidance.

Generally, it was a rather slow day. The market behaviour will likely change tomorrow, when traders will react to the first news from Jackson Hole.

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