Yesterday, the S&P 500 finished the day negative as some weak US data started to weigh a bit on sentiment. The ISM PMIs recently missed expectations with notably the employment indexes showing contraction. The ADP yesterday missed forecasts and the Job Openings were lower than expected with negative revisions to the prior figures. Moreover, we had Fed Chair Powell testifying to Congress, but he basically reaffirmed their patient approach stressing that the timing for rate cuts will be determined by the incoming data.
S&P 500 Technical Analysis – Daily Timeframe
![S&P 500 Technical Analysis](https://images.forexlive.com/images/S%26P%20500%20Technical%20Analysis_id_4e643f4b-d55c-4f21-9f6c-cd4e62226578_size900.jpg)
On the daily chart, we can see that the S&P 500 bounced around the trendline where we had also the confluence with the red 21 moving average and the previous resistance turned support. This is where the buyers stepped in with a defined risk below the trendline to position for a rally into new highs. The sellers, on the other hand, will want to see the price breaking lower to invalidate the bullish setup and position for a drop into the next support at 4946.
S&P 500 Technical Analysis – 4 hour Timeframe
![S&P 500 Technical Analysis](https://images.forexlive.com/images/S%26P%20500%20Technical%20Analysis_id_081fb7fc-fcb5-415b-ac2a-574500821503_size900.jpg)
On the 4 hour chart, we can see that we had also the confluence of the 50% Fibonacci retracement level at the 5048 support. The divergence with the MACD has been going on for a long time and it’s generally a sign of weakening momentum often followed by pullbacks or reversals. In this case, it’s been signalling pullbacks to the previous swing levels where we continuously found dip-buyers. A break below the trendline would confirm a reversal and we could even see a selloff into the 4700 next.
S&P 500 Technical Analysis – 1 hour Timeframe
![S&P 500 Technical Analysis](https://images.forexlive.com/images/S%26P%20500%20Technical%20Analysis_id_2bf81668-d4d9-45dc-bc97-9a93dd08e725_size900.jpg)
On the 1 hour chart, we can see that the latest leg higher diverged with the MACD and led to a pullback into the support zone around the 5048 level. The buyers piled in with a defined risk below the trendline to target new highs. If the price were to fall back into the support, we can expect the buyers to defend the level again as a break below it would likely trigger a selloff into new lows.
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Today we get the latest US Jobless Claims figures, while tomorrow we conclude the week with the US NFP report.