Fundamental Overview
The S&P 500 has been rallying almost non-stop since the FOMC meeting, and thanks to the miss in the NFP report and the benign CPI report the price eventually hit a new all-time high yesterday. We are currently seeing a bit of a pullback, which is totally normal after such a strong run. The US jobless claims yesterday could have weighed on the risk sentiment if they were worse than the prior reading, but instead, we got another positive release which should keep the bullish momentum going.
S&P 500 Futures Technical Analysis – Daily Timeframe
On the daily chart, we can see that the S&P 500 hit a new all-time high yesterday and pulled back a bit soon after. The correction into the 4835 support is unlikely at the moment as we would need a strong deterioration in the growth and jobs data to reverse the bullish trend.
We can expect the buyers to pile in more aggressively if we break above the 5336 level. The sellers, on the other hand, might step in around these levels with a defined risk above the high to position for the correction into the 4835 level, although that looks unlikely at the moment.
S&P 500 Futures Technical Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that we have a good support zone around the 5300 level where we can find the confluence of the trendline and the 38.2% Fibonacci retracement level. Technical buyers might lean on the trendline to position for a rally into new highs with a better risk to reward setup. The sellers, on the other hand, will want to see the price breaking lower to position for a drop into the 5217 swing level.
S&P 500 Futures Technical Analysis – 1 hour Timeframe
On the 1 hour chart, we can see that we have a minor resistance zone around the 5325 level where the price got rejected a couple of times since yesterday. A break above the zone should see the buyers piling in with more conviction and target a new high.
The sellers, on the other hand, might lean on it to position for the continuation of the pullback into the trendline with a better risk to reward setup. The two red lines indicate the top and bottom of the average daily range. This is how much the market could move on any given day barring strong catalysts.
Upcoming Catalysts
We don’t have anything on the calendar for today, so the market will likely consolidate into the weekend.
