S&P 500 Trades Sideways Since Powell’s Speech – Is It Bullish?
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:
Futures Contract Remains Close to Local High
Let’s take a look at the hourly chart of the 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.
Stock Trading Strategist