Jobs Data Sends S&P 500 Lower, but Trend Remains Bullish
2022.12.02 10:50
Stock prices went sideways following their Wednesday’s rally. Was that a short-term topping pattern?
The lost 0.09% on Thursday, as it fluctuated following its Wednesday’s rally of 3.1%. The market broke higher after Jerome Powell’s dovish speech. Yesterday the broad stock market’s gauge was the highest since September 12, but it bounced down from the 4,100 level.
This morning the S&P 500 opened 1.1% lower following better-than-expected release. The market will likely retrace some of its Wednesday’s rally, at least at the opening of the trading session. Still, the index continues to trade above its two-month-long upward trend line, as we can see on the daily chart:
Futures Contract Close to 4,000 Again
Let’s take a look at the hourly chart of the contract. It broke below its narrow consolidation along the 4,100 level. The support level is at 3,950-4,000.
S&P 500 E-Mini Futures 1-Hour Chart
Conclusion
The broad stock market opened much lower this morning. On Wednesday it rallied over 3% and yesterday it traded within a consolidation. So it will retrace some of the advance, and we may see more short-term uncertainty.
Here’s the breakdown:
- The S&P 500 paused its rally yesterday, and today it will likely retrace some of it.
- It still looks like a consolidation following a rally from the October low.
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