Previous: S&P 500 Dips Below Important Pivots in Risk-off Trading (11/1)
S&P500
After a poor NFP (80K versus forecast of 97K and Sept’s 158K (revised from 103K)), risk sentiment was off. The S&P 500 failed to sustain a break above the 61.8% retracement of the 1288.85 to 1208.36 swing at 1258.10. The 4H chart shows a strong rejection at that coming after an 3-wave, abc correction. Also note that the RSI remained below 60, and with a push below 40 suggests maintenance and return of bearish momentum. A test of this week’s lows near 1210 is at hand.
Below the 1208.36 low the market opens up the a support cluster near 1190, 200SMA and previous support pivots from the mid-October consolidation. This was also near resistance for 9/27.
Fan Yang CMT is the Chief Technical Strategist FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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