S&P 500 had a volatile week last week, opening under $3,000.00 and moving down to $2,853 falling down over -3.00% on the week, before popping higher on positive unemployment numbers. Even though the job market increased by +136,000, it still missed market estimates. However, this number keeps the Fed’s plan in place to cut rates, which investors view as good news as this will allow more lending, which will create more spending bolstering the economy.
S&P 500 closed at +1.35% on Friday on positive news, however for a technical outlook we have been in a downtrend for the last 20 trading days, with a bullish bounce last Thursday and Friday gaining +2.5% back on the rally. We believe this is just profit-taking on the sell-off and we will see downward movement to form a correction pattern to the upside. The goal is a play back up to $3,000. If we see more negative news on the geopolitical front, we may see a dive bomb into the $2750.00 region.
THE PLAY: We are buying at $2,850.00 for the rally to $3,000.00 (bar negative US events)
S&P 500 closed at +1.35% on Friday on positive news, however for a technical outlook we have been in a downtrend for the last 20 trading days, with a bullish bounce last Thursday and Friday gaining +2.5% back on the rally. We believe this is just profit-taking on the sell-off and we will see downward movement to form a correction pattern to the upside. The goal is a play back up to $3,000. If we see more negative news on the geopolitical front, we may see a dive bomb into the $2750.00 region.
THE PLAY: We are buying at $2,850.00 for the rally to $3,000.00 (bar negative US events)