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March 10, 2023The S&P 500 is range-bound between 3,878 and 3,917.7 today after shedding 4.81 points and closing at 3,918.32 yesterday.
Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. The iShares U.S. Treasury Bond ETF has gone up 1.14% to trade at $23, thereby indicating that government bond yields were downbeat across the yield curve.
Following a previous reading of 3.4, Unemployment Rate in United States released today at 13:30 UTC fell short of the 3.4 figure expected by analysts with an actual reading of 3.6. Highly important Initial Jobless Claims data from United States beat analyst expectations of 195,000 with a reading of 211,000.
On the flip side, United States Non Farm Payrolls released today at 13:30 UTC is better than expected at 311,000 but down from preceding data of 504,000 according to new data.
S&P 500 could begin to recover as it approaches significant support, now 34.77 points away from 3,878.74. Dipping below could be an indication that further losses are ahead. The MACD is significantly below its signal line, which suggests the market is running out of bearish momentum and could revert to a positive outlook as bulls regain control. The S&P 500's lower Bollinger Band® is at 3,883.58, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Technical analysis indicates that the S&P's current downtrend might soon change course and start climbing up in the short term.
In the meantime, negative performances are also seen in other markets, ASX 200 drops 2.28% to trade around 7,144.7. After ending yesterday's session at 19,926, Hang Seng lost 605.82 points and is trading around 19,320. FTSE is trading around 7,729.28 (down 150.72 points).
The index has been trending lower for about a month. After hitting an important low of 3,577 approximately 4 months ago, the S&P 500 has bounced back 9.54% since.
