Jobs Data Sends S&P 500 Lower, but Trend Remains Bullish
Sunshine Profits | Dec 02, 2022 09:24AM ET
Stock prices went sideways following their Wednesday’s rally. Was that a short-term topping pattern?
The S&P 500 index 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 nonfarm payrolls 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:
Let’s take a look at the hourly chart of the E-mini S&P 500 futures contract. It broke below its narrow consolidation along the 4,100 level. The support level is at 3,950-4,000.
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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The information above represents analyses and opinions of Paul Rejczak & Sunshine Profits' associates only. As such, it may prove wrong and be subject to change without notice. At the time of writing, we base our opinions and analyses on facts and data sourced from respective essays and their authors. Although formed on top of careful research and reputably accurate sources, Paul Rejczak and his associates cannot guarantee the reported data's accuracy and thoroughness. The opinions published above neither recommend nor offer any securities transaction. Mr. Rejczak is not a Registered Securities Advisor. By reading his reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these reports. Investing, trading and speculation in any financial markets may involve high risk of loss. Paul Rejczak, Sunshine Profits' employees, affiliates as well as their family members may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.
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