SPXUSD daily guidance is neutral with a bearish bias. Recommended ratio: 40% SPX, 60% Cash.
*BOUNCE WATCH. The Employment Situation was released this morning and 263k nonfarm workers were added to the economy in September while Unemployment edged back down to 3.5% from 3.7% in August. The 17th GDPNow US Q3 GDP estimate came in at 2.9% today compared to 2.7% on 10/05. Cleveland Fed President Mester tried to warn us of rising Unemployment yesterday and it came down today instead, maybe the Federal Reserve is hiring thousands of nonfarm workers to get together and figure out how to bring down inflation. NY Fed President Williams said today that he envisions another aggressive rate hike in November (likely 75bps) and that he too sees a slowdown in job markets in 2023 accompanied by higher interest rates and lower inflation. In response to the oil production cut by OPEC+, The White House Admin tapped into the SPR yet again, bringing its total emergency oil reserves down to the lowest they've been in forty years. With midterm elections coming up in the USA, it's hard not to see this move by the White House as politically motivated. Key Upcoming Dates: FOMC Minutes at 2pm EST 10/12; September US CPI at 830am EST 10/13; September US Retails Sales at 830am EST 10/14; 18th GDPNow US Q3 GDP Estimate 10/14; UofM October Consumer Sentiment Index at 10am EST 10/15.*
Price is currently testing $3658 minor support + the weak descending trendline from July 2021 at ~$3633 as support after being rejected by the lower trendline of the descending channel from August 2021 at ~$3800. Volume remains High (low) and has favored sellers in the past two sessions. Parabolic SAR flips bearish at $3605, this margin is bearish at the moment. RSI is currently testing 38 support after breaking below the uptrend line from January 2022 at ~41. Stochastic crossed over bearish today and is trending down at 78 as it approaches 76.29 support with no signs of trough formation. MACD is currently trending down at -81 after being rejected by -76.22 minor resistance and is on the verge of crossing over bearish if it gets below -86; it's still technically testing the uptrend line from March 2020 at ~-80 as support. ADX is currently completing a trough and beginning to trend up slightly at 28 as Price is rejected by the descending channel from August 2021 at ~$3800.
If Price is able to bounce here at the weak descending trendline from July 2021 (~$3633) then it will have to close above $3658 minor support in order to be able to retest the lower trendline of the descending channel from August 2021 at ~$3800 as resistance. However, if Price continues to break down here, it will likely test $3517 minor support for the first time since November 2020. Mental Stop Loss: (two consecutive closes above) $3658.
*BOUNCE WATCH. The Employment Situation was released this morning and 263k nonfarm workers were added to the economy in September while Unemployment edged back down to 3.5% from 3.7% in August. The 17th GDPNow US Q3 GDP estimate came in at 2.9% today compared to 2.7% on 10/05. Cleveland Fed President Mester tried to warn us of rising Unemployment yesterday and it came down today instead, maybe the Federal Reserve is hiring thousands of nonfarm workers to get together and figure out how to bring down inflation. NY Fed President Williams said today that he envisions another aggressive rate hike in November (likely 75bps) and that he too sees a slowdown in job markets in 2023 accompanied by higher interest rates and lower inflation. In response to the oil production cut by OPEC+, The White House Admin tapped into the SPR yet again, bringing its total emergency oil reserves down to the lowest they've been in forty years. With midterm elections coming up in the USA, it's hard not to see this move by the White House as politically motivated. Key Upcoming Dates: FOMC Minutes at 2pm EST 10/12; September US CPI at 830am EST 10/13; September US Retails Sales at 830am EST 10/14; 18th GDPNow US Q3 GDP Estimate 10/14; UofM October Consumer Sentiment Index at 10am EST 10/15.*
Price is currently testing $3658 minor support + the weak descending trendline from July 2021 at ~$3633 as support after being rejected by the lower trendline of the descending channel from August 2021 at ~$3800. Volume remains High (low) and has favored sellers in the past two sessions. Parabolic SAR flips bearish at $3605, this margin is bearish at the moment. RSI is currently testing 38 support after breaking below the uptrend line from January 2022 at ~41. Stochastic crossed over bearish today and is trending down at 78 as it approaches 76.29 support with no signs of trough formation. MACD is currently trending down at -81 after being rejected by -76.22 minor resistance and is on the verge of crossing over bearish if it gets below -86; it's still technically testing the uptrend line from March 2020 at ~-80 as support. ADX is currently completing a trough and beginning to trend up slightly at 28 as Price is rejected by the descending channel from August 2021 at ~$3800.
If Price is able to bounce here at the weak descending trendline from July 2021 (~$3633) then it will have to close above $3658 minor support in order to be able to retest the lower trendline of the descending channel from August 2021 at ~$3800 as resistance. However, if Price continues to break down here, it will likely test $3517 minor support for the first time since November 2020. Mental Stop Loss: (two consecutive closes above) $3658.