In a note Friday, analysts at BTIG named the level they believe the S&P 500 will likely work its way towards.
In the note, written before Friday's open, the firm said it sees the S&P 500 moving towards its 50 DMA at 5076, stating that yesterday's action saw a clear tone shift.
"We suspect SPX works its way towards the 50 DMA (5076) over the coming days," wrote the firm. "Yesterday's afternoon selloff was attributed partly to some hawkish fedspeak, of which today's NFP number is unlikely to offset. The other, and likely bigger impact, was the escalation of mid-east tensions. That is a fluid situation and difficult to anticipate how it will develop into the weekend."
Earlier today it was revealed that Nonfarm Payrolls (NFP) in the US rose by 303,000 in March, surpassing the market expectation for an increase of 200,000.
"Yesterday was ugly, no doubt, with SPX having a huge negative outside day and closing firmly below that 20 DMA (5188), suggesting a clear tone shift from prior dips this year," added BTIG.
The firm noted that "we have decisively broken most uptrend lines from the October lows," adding that while none of this means there is a guaranteed move lower, they think there is enough evidence of a tone change to warrant more caution broadly.