On the daily chart below for the S&P 500, we can see that the market has failed to break above the key 4175 resistance once again and it’s now threatening a deeper pullback. The break below the trendline suggests that the momentum has switched to the downside.

Recently the buyers haven’t got good news on the fundamental side as jobless claims Jobless Claims Jobless claims are a weekly statistic reported in the United States that represents a key barometer for domestic employment. As one of the most closely watched US indicators, jobless claims carry a lot of weight in financial markets, namely forex and the stock market.Jobless claims are reported on a weekly basis by the Department of Labor. While painting a picture of the overall health of the economy, jobless claims can be broken down into two types.This includes initial jobless claims or person Jobless claims are a weekly statistic reported in the United States that represents a key barometer for domestic employment. As one of the most closely watched US indicators, jobless claims carry a lot of weight in financial markets, namely forex and the stock market.Jobless claims are reported on a weekly basis by the Department of Labor. While painting a picture of the overall health of the economy, jobless claims can be broken down into two types.This includes initial jobless claims or person Read this Term started to rise and the latest US Retail Sales missed across the board. Last Friday, the US PMIs beat expectations though and, although it may be good news as the economy might have not been hit by the banking crisis in March, the market seems to be more worried about a persistently hawkish Fed as the details in the report about inflation were not promising.

S&P 500 Technical Analysis

In the 4 hour chart below, we can see that the price has now broken below the trendline and the moving averages are pointing to the downside giving further confirmation of the bearish momentum. The swing support at 4100 should be the target for the sellers if the correction extends. The last bullish leg was also diverging with the MACD, so the 4100 level would also be a natural target for the pullback.

In the 1 hour chart below, we can see that the price has also broken out of the range that was created just below the key 4175 resistance level and it’s not threatening a break of the Friday’s low. The sellers are likely to pile in on a break and extend the fall to the 4100 support. The buyers, on the other hand, may want to lean on this level to target the Friday’s high at 4160 awaiting new economic data this week.