S&P 500 (SPY) Moves Lower As Traders Focus On Weak Economic Data

S&P 500 Continues to Face Pressure

Traders' reactions to today's dismal Services PMI report and subpar New Home Sales data caused the S&P 500 to decline. The Dow Jones closed the day below 33,000 points.

As some traders were willing to wager that the Fed would be more dovish owing to concerns in the services sector, it is interesting to note that the market attempted to gather upward momentum after the publication of the Services PMI data.

But Treasury rates have already begun to rise, which is adding to the pressure on equities. Traders are not yet prepared to expand their stock purchases. Trading will probably continue to be choppy and unpredictable up to the Jackson Hole Symposium, which begins on August 25.

S&P 500 was able to close at 4160 below the 20 EMA. The failure of today's effort to return above this level is a negative indication.

The recent lows around 4115 are the closest level of support for the S&P 500. If the S&P 500 drops below this point, it will move in the direction of the 50 EMA at 4080. The support level at 4040 will be tested if a move below the 50 EMA occurs.

The S&P 500 will be pushed toward the next resistance level at 4190 if the barrier at the 20 EMA is successfully tested. The S&P 500 will go toward the barrier at 4220 if it is able to regain momentum over this level.

Energy Stocks Perform Better Than Others As Oil Hits New Highs

Energy stocks had a fantastic day, driven by well-known companies including Exxon Mobil, Chevron, and Occidental Petroleum. Traders are increasing their purchases of top energy stocks as they appear willing to wager that WTI oil has bottomed.

The market for basic commodities increased today as well. The stock of copper producers including Freeport-McMoRan, Teck Resources, and Hudbay Minerals were significantly supported by robust copper markets.

The day was mixed for tech stocks. However, it seems that the market's perception of tech companies is still negative as a result of increased rates and unimpressive news from Zoom and Twitter.

In a recent financial report, Zoom revealed that business growth was decreasing. The stock lost more than 15% of its value due to the ruthless market.

After a whistleblower claimed that Twitter had deceived authorities about spam accounts and hacker defenses, the business came under a lot of criticism. The information is excellent for Elon Musk, who is trying to back out of his agreement to purchase Twitter by raising the issue of spam accounts.