Bouncy is the way I would describe the price action in the S&P 500 on Friday. It implies a market that got low enough to find buyers and those buyers were willing to hold on to those positions going into the weekend, a sign of confidence. Monday the expectation would be an inside to higher move in the S&P 500.
A positive close for the S&P 500 on Friday is the expected behavior as buyers entered the market on Thursday. Friday action will give us a barometer of the confidence of buyers going into the weekend to hold a long S&P 500 position.
Although PPI will be announced on Thursday the expectation for movement in the S&P 500 would be a smaller range than Wednesday and would imply a rest day for this market. The objective to the upside would be 5455 to 5460
Everything is ready in the S&P 500 as it establishes its structure going into Wednesday's CPI and Fed Outlook. If buyers are still present, a close above 5040 would be the objective.
A quiet day in the S&P 500 is expected for Tuesday as the market gets ready for the fundamentals coming out on Wednesday.
The stage is set in the S&P 500 in preparation for labor numbers coming out on Friday. Market reaction is 50-50 when you have this type of report. The bias is for a positive close going into the weekend.
Thursdays movement in the S&P 500 will get the market ready for the Friday labor numbers. The expectation is for continuation to movement to the upside and a close above 5390.
Follow-through to the upside is expected in the S&P 500 for Wednesday, June 5. In the past two trading sessions buyers have entered into market lows to rally the S&P 500 into the close. The challenge now can these buyers move the market to close above 5230 by the end of Wednesday session.
Buyers bought the break but can the follow through on to new highs!
Continuation of an upside move is expected for Monday in the S&P 500. Buyers entered the market on Friday. The challenge will be there ability to be consistent with additional moves to the upside.
Be cautious on the downside in the S&P 500 for Thursday's market movement. It would not be surprising to see the S&P 500 moved to lower prices but the expectation is a bounce on the downside which means the market would trade up above its low.
The expectation for the S&P 500 for Wednesday's market action is a quiet day basically trading inside the range of Tuesday.
Follow through to the upside is expected in the S&P 500 for Tuesday, May 28. The price objective is a close above 5340.
After the overreaction by the S&P 500 to the fundamental news Fridays bounce back to the upside in the S&P 500 is logical. The issue now is will buyers follow through in the shortened session on Monday.
I am now looking for another big day down on Friday in the S&P 500. I think the market overreacted to the news they came out on Thursday.
On Thursday in the S&P 500 can buyer follow through with the upward momentum started in the Asia session?