High volatility in the S&P 500 on Thursday is not expected as the market positions itself for Friday's labor numbers.
After the bounce witnessed off of the low on Tuesday, and inside rest day would be expected for Wednesday.
Look for the S&P 500 to trade inside Friday's range. In other words, were looking for a rest day as the market sets up for the rest of the week.
The S&P 500 may go sideways and catch its breath as we go into year end even though the expectation would be a positive close as we finished the year out. A large moved to the downside would not be expected.
Higher prices are expected in the S&P 500 futures market for Thursday, December 28. There are no major fundamentals coming out on Thursday. The challenge will be can the buyers who bought Thursday's break continue on Thursday to higher prices.
Near record levels in the S&P 500 can the buyers follow through as we go into the end of this year. The confidence from buyers that are needed to extend the S&P 500 will be evident over the next couple of days.
Friday's price action in the S&P 500 implies buyers are evening up going into the holiday weekend. Retesting Friday highs would be expected on Tuesday.
The S&P 500 overall structure is neutral going into Friday's PCE number. The market bias is for movement higher and this would be the expectation provided the PCE number provides an indication that inflation may be slowing down.
Thursday in the S&P 500 has the possibility of setting up market action for Friday fundamentals like the PCE number. This would mean not looking for a sustained downward move but rather a market that goes sideways or slightly lower leaving a shadow on the bottom.
With the resilience of the economy, fed holding off on interest rate increases we are seeing continued enthusiasm building in the S&P 500. The expectation for Wednesday would be new highs but not a large move.
Sideways movement is expected for Tuesday after Monday's week rally in the S&P 500. The motivation for an increase in volatility for the S&P 500 is expected to occur with fundamentals later in the week.
The S&P 500 price action created a cautious close on Friday. The bias for this market is the higher levels even though there was selling for the last 2 days at the highs in this market.
Thursday in the S&P 500 was a rest day. Now the challenge for this market going into Friday's session will be follow-through from the buyers. Can they provide a confident close going into the weekend with a close above 4790.
Thursdays price action in the S&P 500 after the Fed announcements provided a step in the bullish direction for buyers to continue moving levels higher. Follow-through would be expected on Thursday to the upside but not the same size of range that was shown on Wednesday.
The bias in the S&P 500 continues to the upside with Tuesday's market action. If the Fed or the PPI reveals all surprise, this market could easily come tumbling down. However, that is not what I'm looking for. My expectations are for new highs in this market on Wednesday.
The S&P 500 price action on Monday establishes a wait and see structure going into Tuesday's fundamental CPI report. I still think the bias is for moved to the upside.
Friday's positive close in the S&P 500 implies that buyers have returned to the S&P 500 but can they follow through. A dramatic move higher on Monday is not expected. The objective would be a close above 4670.