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May 05, 2023A quick look at yesterday: overall, the S&P shed around 29.53 points or 0.72% and ended yesterday's session at 4,061.22.
Bond sell-off and inverted yield curve raises the spectre of economic recession in the US; after trading around 4.7%, the yield on one month US government debt rose to 5.76%.
In contrast, positive data for the S&P reported earlier when data for United States Average Hourly Earnings published today at 12:30 UTC came out at 0.5%, beating projections of 0.3% and showing improvement over the preceding figure of 0.3%. Highly important Non Farm Payrolls data from United States beat analyst expectations of 180,000 with a reading of 253,000. United States Unemployment Rate came out at 3.4, better than analyst estimates of 3.6 and improving upon the previous reading of 3.5.
S&P 500 made an initial break below its 50 day Simple Moving Average at 4,056.83, a possible indication of a forthcoming negative trend. Price action remains constrained around the key Fibonacci level of 4,049.64 currently serving as support. If price action breaks below, the next Fib hurdle is 4,012.62. Despite this, the S&P could begin to recover as it approaches significant support, now 15.76 points away from 4,045.46. Dipping below could be an indication that further losses are ahead.
Looking forward, the S&P 500 is poised to extend its strong downtrend and continue declining.
In the meantime, negative performances are also seen in other markets, Dow Jones lost 0.86% yesterday and closed at 33,400.
Positive performances can be seen by looking at other markets as notably, FTSE rose 0.62% yesterday and closed at 7,702.64. CAC increases 0.83% yesterday and closed at 7,340.77.
The index has been trending positively for about a month. The S&P hit a significant low of 3,577 around 6 months ago, but has since recovered 14.36%.
