(MENAFN– Daily Forex)
- The s&p 500 has taken off to the outside during the trading session on Thursday, as we are now threatening the 4200 level.
- Ultimately, this is a market that will continue to be very noisy, but as we head into the Non-Farm Payroll announcement on Friday, you need to be cautious, as a lot of the volatility can knock the market back and forth.
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The 4100-level underneath could be potential support considering that it was significant resistance previously and therefore it’s likely that we have a bit of a“market memory” situation yet again. Short-term pullbacks offer value, but one of the things that would be important to pay attention to is the fact that the jobs number will have a lot to do with what the federal reserve will probably do. After all, the market is likely to pay close attention to the idea of whether the jobs market continues to throw more money at people. If it does, that means that inflation isn’t going anywhere in the United States.Chasing is not the Way to Go
One of the things that traders are paying the most attention to right now is that inflation has dropped a bit. However, the Federal Reserve is nowhere near cutting rates, even though the markets are trying to price that end. In other words, they continue to flat-out ignore the central bank, and as a result, we are where we are.
Earnings season hasn’t been as disastrous as a lot of people had thought so the course has helped the situation as well. Do not forget that we are during earnings season, and that continues to be a potential catalyst in both directions. The market could go as high as 4300 if we continue to see this bullish pressure, but I think you need to see some type of pullback if you choose to be a buyer. You certainly can’t chase it all the way up here, we’ve been a couple of very strong days in a row so more likely than not you will get some type of pullback that you can take advantage of given enough time. In fact, it might be the jobs report that makes that happen, you never know. Nonetheless, chasing is not the way to go.
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