The S&P erases gains after it rallied beyond 4,299.19 for the first time in 9 months, closing at 4,267.52

The S&P rallied to 4,299.19 for the first time in 9 months (gaining 16.48 points). It later dropped, erased yesterday’s gains and closed at 4,267.52.

Initial Jobless Claims data from United States will be released today at 12:30 UTC with analysts expecting a decline to 235,000. Potentially significant price fluctuations in the S&P are expected to follow.

Crude Oil Inventories in United States fell short of market expectations (1 million) with a reading of -451,000, continuing the decline from the previous figure of 4.49 million.

While price action maintains a negative bias, United States Cushing Crude Oil Inventories came out at 1.72 million, while a consensus of analysts was expecting 719,000. United States Trade Balance (Apr) released yesterday at 12:30 UTC with a figure of -74.6 billion, while the previous figure was -60.6 billion.

The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. A "bearish engulfing" pattern — a scenario when a larger red candle engulfs a smaller green candle, at the top of a prevailing uptrend. Typically this is a signal of lower prices in the near term. The S&P 500's upper Bollinger Band® is at 4,278.44 which indicates a further downward move may follow. In contrast, the S&P 500 could begin to recover as it approaches significant support, now 12.93 points away from 4,254.59. Dipping below could be an indication that further losses are ahead.

In general, examining the technical analysis landscape, although indicators are mixed further drawbacks may be next for the S&P.

In the meantime, negative performances are also seen in other markets, Nasdaq lost 1.29% yesterday and closed at 13,276. Nikkei lost 0.86% yesterday and closed at 31,900. KOSPI Composite Index retreats 0.37% yesterday and closed at 2,615.6.

Looking ahead, ongoing depreciation may be prolonged as today at 12:30 UTC data for United States Initial Jobless Claims will be released, with an expected decline to 235,000 from the preceding figure of 232,000.

The index has been trending positively for about 2 months. The S&P 500 now trading 7% above its 3-month low of 3,577.