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March 09, 2023
Financial Select Sector SPDR Fund drops 67.5 cents early on and steadies around the $34.28 level.
Highly important Initial Jobless Claims data from United States beat analyst expectations of 195,000 with a reading of 211,000. Highly important Crude Oil Inventories data from United States beat analyst expectations of 395,000 with a reading of -1.69 million.
While price action maintains a negative bias, United States JOLTs Job Openings (Jan) came out at 10.82 million, while a consensus of analysts was expecting 10.5 million.
The Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. After descending below strong Fibonacci support at $34.7, market bears have earmarked $34.36 as the next downside target. Financial Select Sector SPDR Fund has just crossed the lower Bollinger Band® at $34.58, indicating further losses could be forthcoming. On the other hand, note that the RSI is a momentum oscillator that measures changing price movements on a scale of 0-100. In Financial Select Sector SPDR Fund's case, the index has fallen below 30, signalling that the asset is oversold. Financial Select Sector SPDR Fund could begin to recover as it approaches significant support, now 25 cents away from $34.54. Dipping below could be an indication that further losses are ahead.
In the short term, Financial Select Sector SPDR Fund is expected to maintain its recent downtrend and continue spiralling lower.
In the meantime, negative performances are also seen in other markets, The Charles Schwab is trading around $71.2 (down $5). JP Morgan Chase is down to $132.97, losing $4.83, after closing at $137.8 in the preceding trading session.
Other assets are showing positive performances as General Electric shoots up 7.19% to trade around $93.23.
With markets struggling for positive sentiment, upcoming macro data could potentially attract buyers in the market as United States Non Farm Payrolls expected to decline to 205,000 while its preceding data was 517,000, data will be available tomorrow at 13:30 UTC.
Furthermore, United States Unemployment Rate figure is projected at 3.4. It previously stood at 3.4; data will be released tomorrow at 13:30 UTC.
The fund has been trending lower for about 30 days. 4 months ago, Financial Select Sector SPDR Fund fell to a low of $30.29 but has since recovered 15.42%.
