S&P 500: Base Building, Non-Farm Payrolls Tomorrow
- S&P 500 climbs to start year, into overhead levels
- A little backing-and-filling might be what the market needs to trade to new highs
- U.S. jobs report due out tomorrow
So far, to begin the year the S&P 500 has risen with decent force since ending the final three days of 2016 on a down note. The Feb 11 trend-line which was broken last month was marginally recaptured during yesterday’s trade, but the more the market trades around it without regard for it as support or resistance the less important it becomes in our view.
The current advance has the market pushed up against top-side resistance running off the 12/13 peak. For the market to gain momentum it will need to cross beyond this line in addition to the 12/27 peak at 2274 and 12/13 record high at 2277.5. A little backing-and-filling here might turn out to be what the market needs; building a bigger base from which to launch higher. The trend-line off the November low will be eyed as a potential spot of support on weakness. An intersection of the top-side line and rising trend-line could present an inflection point of interest should the market draw to that point; we’ll delve more into that should it become relevant.
S&P 500: Daily
Created with Tradingview
Tomorrow, we have the US jobs report due out at 1330 GMT time; the consensus estimate is for NFPs to show the U.S. economy added 170k new jobs in December, unemployment rate ticking higher to 4.7%, and average hourly earnings rising to 2.8% YoY from 2.5%. As per usual, no predictions regarding the outcome, but expect knee-jerk reactions in both directions in the minutes following the release.
For trader education, see our Trading Guides.
---Written by Paul Robinson, Market Analyst
You can receive Paul’s analysis directly via email by signing up here.
You can follow Paul on Twitter at @PaulRobinonFX.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.