SPY is Falling Pre-Market

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These are the best rates you can find in the fixed-income markets:

• C.D.s (New Issues): 5.45% (1-year term)

• U.S. Treasury Bonds: 5.31% (6-month period)

• U.S. Treasury Zeros: 5.18% (9-month period)

• Agency/GSE: 5.86% (5-year period)

• Corporate (Aaa/AAA): 5.57% (10-year term)

• Corporate (Aa/AA): 5.73% (9-month period)

• Corporate (A/A): 6.77% (10-year term)

• Corporate (Baa/BBB): 8.68% (3-year period)

• Municipal (Aaa/AAA): 4.30% (20-year term)

• Municipal (Aa/AA): 4.65% (20-year term)

• Municipal (A/A): 4.75% (20-year period)

• Taxable Municipal: 5.78% (30-year period)

For our street investors… face the wall with A.I. sentiment analysis and adjust your trading for Today (June 20, 2023):

Expect downward pressure on SPY today due to hawkish remarks from Federal Reserve officials, and a smaller-than-expected rate cut in China which could induce further volatility, potentially lifting VIX. China's smaller-than-expected rate cut indicates worries over its economic recovery, consequently depressing sentiment and pressuring global indices. This factor and potential U.S. rate hikes could add choppiness to the market, implying a spike in VIX.

The tech sector, reflected in Microsoft's recent downturn, seems to face headwinds, as evident in Adobe's dip following potential antitrust scrutiny of its Figma deal. This may bleed over to other tech stocks within the SPY, negatively influencing the index.

The auto sector may experience turbulence due to the pressure on Ford, GM, and Tesla to cut their reliance on Chinese parts. This could pose additional supply chain challenges, potentially impacting earnings and margins, and translating into adverse price action.

The healthcare sector could be a bright spot, owing to Eli Lilly's acquisition of Dice Therapeutics, spotlighting M&A activities within the sector. However, this news is firm-specific. Its influence on SPY may be limited, but could still provide some offset to the broader bearish sentiment.

Watch for comments from Fed Vice Chair Michael Barr and Fed Chair Jerome Powell's testimony. Their remarks can significantly sway market sentiment, impacting SPY and VIX. Moreover, the upcoming Housing Starts report could influence the financials and homebuilders' sector within the SPY.

Overall, the market is likely to be bearish today with increased volatility. Trade cautiously, eyeing defensive sectors for possible resilience. Monitor market reaction to Fed remarks and Chinese economic developments closely, as these could set the tone for the following trading sessions.