The S&P500 fell back to range after a volatile week
The S&P500 broke out of the ascending trend line and fell back to within the range between 3550 and 3750. The recent lower time frame sideways price movement trades between the 0.5 and 0.61 of the Fibonacci Retracement of the upward movement. A deeper retracement can push price towards the 0.38 which is further supported by the minor support region at 3660.
However with the bearish outlook on the equities in the medium term outlook and the contracting of the economy (October ISM down, New Orders at new low, New export order enter contraction). It was a good thing that the higher than expected Non farm payroll (NFP) was the one of the few positive economic releases that prevented further bearish pressure on equities. Considering both the Fundamentals and Technical outlook, long positions should only be considered if price were to breakout of the 3775 region which will likely signal a continuation of the short term bullish breakout of the consolidation.
However with the bearish outlook on the equities in the medium term outlook and the contracting of the economy (October ISM down, New Orders at new low, New export order enter contraction). It was a good thing that the higher than expected Non farm payroll (NFP) was the one of the few positive economic releases that prevented further bearish pressure on equities. Considering both the Fundamentals and Technical outlook, long positions should only be considered if price were to breakout of the 3775 region which will likely signal a continuation of the short term bullish breakout of the consolidation.