The S&P 500 has been trucking along with the charts, but lacks any clear direction or momentum at present. Maybe that’s based on the US uncertainty of future interest rate rises, but one thing is clear is that the American economy is picking up and that is keeping the S&P 500 elevated at present.
When I say the American economy is picking up in some ways it is, and in some ways it isn't. Last week we saw what some might say was a weak non-farm payroll result with 142k jobs added to the economy, however, the unemployment rate still fell to 6.1%; in line with expectations from the market.
For the most part US sentiment remains strong, and the prospect of future rate rises are getting tantalisingly close for the market, the question is when and if they will be sustained in the short to medium term; though logically it would be unwise to rush rate hikes unless the economy was booming.
Either way the S&P 500 is stuck waiting and is playing with the 2000 mark on an hourly basis, which in turn has led to some very tight support and resistance levels that many are currently scalping off.
Current support can be found at 1994.50 and 1986.80, these levels are acting as strong support in the current market. Resistance levels can be found at 2006.20 at present, and any push through should be treated as an over extension unless it closes above this mark.
With the current market finding little movement, it may be up to tonight’s JOLTS Job Openings, but the market may still disregard this and continue to range between its present scalping opportunities until we have some more direction regarding the prospect of future interest rate rises.