The S&P 500 initially tried to rally during the day on Friday after the jobs number but then broke down rather significantly, slicing through the 2900 level like it wasn’t even there. We have made a fresh low again, and that doesn’t help the situation either. I think at this point, we are starting to worry about interest rates rising, hurting the stock market overall. With the Federal Reserve ready to continue pressing rates higher, stock traders are starting to finally react to this.
That being said, there is an uptrend line underneath that could offer a bit of support. This is a market that does seem to be showing a lot of fear suddenly, so I think trying to buy this market right now is a bit dangerous, and you are probably better off waiting for some type of supportive action at lower levels. If you are short-term trader, then you could be looking at shorting this market, especially if the 2900 level offers a significant amount of resistance on a return to that price. During this week, Federal Reserve Chairman Jerome Powell suggested that interest rates were far from being neutral, and that shows just how hell-bent the Fed is on pushing rates higher. With that being the case, it’s likely that sellers will still be out in full force as we head into the Columbus Day holiday. Keep that in mind, Monday is closed at the futures market will be open for electronic trading.
S&P 500 Video 08.10.18
This article was originally posted on FX Empire
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