Equities plunge after US Jobs report, but rebound sets risk higher

Intermediate
  • A fairly aggressive selloff for US (and also global) equity averages on Friday after a very weak US Employment report, reinforcing a very negative week for US stock markets and also global indices.
  • However, a firm intraday rebound into the close on Friday has avoided a more bearish signal and from a technical analysis perspective, sets risks back to the topside into the start of this week.
  • Here we focus in on the S&P 500, the US benchmark average.

S&P 500 E-Mini risks flip back to the upside

A notable selloff on Friday through key supports at 2729/26 (sustaining the Thursday move lower), but then a very robust intraday rebound rally from the trend line from mid-January and establishing NEW KEY support at 2722.0, producing a bullish Hammer candlestick pattern on the daily chart, to flip risks back higher for Monday.

The late January push above 2690.5 shifted the intermediate-term outlook to bullish BUT risk remains to test NEW KEY 2722.5 support for an intermediate-term shift to neutral and maybe to bearish below 2680.75.

For Today:

  • We see an upside bias for 2761.25; break here aims for 2776.25 and possibly towards 2783/84.
  • But below 2735/34 opens risk down to new key support at 2722.5, maybe 2702.75

Intermediate-term Outlook – Upside Risks: We see an upside risk for 2819.0/31.25.

  • Higher targets would be 2953.25 and 2600.0
  • What Changes This? Below 5 shifts the outlook back to neutral; through 2680.75 is needed for a bear theme.

 

4 Hour Chart

SP500

Comments on this analysis

Your email address will not be published. Required fields are marked *


Latest News

Forex Videos
AUDUSD setting up more positive as EURUSD looks negative

Minor negative on Euro (EURUSD)Positives build on Aussie (AUDUSD), awaits breakout confirmationPound(GBPUSD) downtrend ends

ACB Daily 2019-08-18
Correction Continues

Last week’s 800-point drop in the Dow Jones Industrials made it clear that we are in an extended, ongoing correction. Despite a strong rally at the end of the week which is most likely a counter-trend rally, we should not see the end of the corrective process until the middle of next month.  The fact … Continued

The Forex Zone
The Forex Zone – Erratic activity as trade tensions send mixed signals

Here in The Forex Zone we review the day trade views for most the major Forex currencies in a volatile week for FX markets amid ongoing trade concerns and inverting yield curves. Again, we spotlight the significant levels to watch and the directional biases for the key Forex pairs; EURUSD, GBPUSD, USDCAD, AUDUSD, NZDUSD and … Continued

Dax index monthly
Dax weekly report 20190815

Dax retests & holds the low so far at 11435. A break lower targets 11400/380, 11320/300 & below 11280 risks a slide as far as support at 11180/170. Bulls need a double bottom at 11435/425 to trigger a recovery targeting 11485/495 & first resistance at 11520/530. If we continue higher look for 11580/590 & minor … Continued


Forex Brokers in your location