S&P 500 Trades Sideways Since Powell’s Speech – Is it Bullish?
Sunshine Profits | Dec 05, 2022 09:43AM ET
Stock prices went sideways on Friday despite the initial negative reaction to jobs data. Will they get back to highs?
The S&P 500 index lost 0.12% on Friday after opening much lower on better-than-expected monthly Nonfarm Payrolls release. The market extended its short-term consolidation, as it remained above the 4,000 level. On Wednesday the S&P 500 rallied over 3% after Jerome Powell’s dovish speech . Basically all asset classes rallied including gold, silver, and oil.
This morning the S&P 500 will likely open 0.5% lower. So it may see more short-term uncertainty. Investors will be waiting for the important ISM Services PMI release at 10:00 a.m. 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 continues to trade along the recent local highs and above the support level of around 4,050. There have been no confirmed negative signals so far.
The S&P 500 index keeps fluctuating since its Wednesday’s 3% rally. On Friday the market opened lower following better-than-expected jobs data release, but it closed virtually flat. Today we may see more short-term uncertainty. It still looks like a consolidation within an uptrend.
Here’s the breakdown:
- Stock prices remained close to their local highs on Friday, as the S&P 500 extended a short-term consolidation.
- We may see some more uncertainty this morning, as investors await economic data.
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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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