U.S. Indices Sliding, S&P 500 Rejects Resistance - FX Leaders News
NFP

U.S. Indices Sliding, S&P 500 Rejects Resistance

Posted Friday, December 7, 2018 by
Shain Vernier • 1 min read

After a massive late-day comeback on Thursday, the U.S. indices have opened Friday’s session negative. In the first hour since the cash open, the DJIA is off 150 points, followed by a drop of 15 for the S&P 500 SPX. Sentiment is shifting negative as the markets are showing signs of exhaustion.

During the U.S. pre-market, the employment numbers for November hit the newswires. It was not the normal strong tone we have come to expect, but a bit of a downer. Here is a look at the hard data:

Event                                                               Projected   Actual

Average Hourly Earnings (Nov., YoY)             3.1%         3.1%

Non-Farm Payrolls (Nov.)                                200K        155K

Unemployment Rate (Nov.)                             3.7%         3.7%

U.S. Non-Farm Payrolls for November came in well under projections and the previous release. While most analysts are willing to chalk the downturn up simply as a pre-holiday lull, the decrease does buck an uptrend. However, the aggregate Unemployment Rate is still well under the FED’s benchmark of 4%, a strong signal that the economy remains in an expansionary cycle.

S&P 500 Technicals

After a “crazy” Thursday, the December E-mini S&P 500 has put in a test of topside resistance. Price is trading around the 2675.00 level, quite the bounce from yesterday’s lows of 2621.25.

December E-mini S&P 500 Futures (ES), Daily Chart
December E-mini S&P 500 Futures (ES), Daily Chart

Here are the resistance levels to watch for today:

  • Resistance(1): Daily SMA, 2697.50
  • Resistance(2): Bollinger MP, 2716.75

Overview: At press time, the U.S. indices are beginning to show signs of weakness. The early session rejection of the Daily SMA by the December E-mini S&Ps is an ominous sign. Anything can happen, but a drop to the 2650.00 level is very possible. For now, I am in wait-and-see mode when it comes to the U.S. indices.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier is our US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of