The S&P 500 initially drifted a bit lower during the trading session on Thursday, but then found the short-term one-hour trendline to be supportive enough to lift the market from the 2625 handle. We rallied to make a fresh, new high for the day, and therefore have formed a bullish move over the last 24 hours. However, we have the jobs number coming out today and that can offer a lot of volatility in this market, and I believe that the 2650 level will be the target if we can continue to go higher. If that’s the case, then I would expect sellers to reappear there. If we get a very bullish jobs number, that could send this market through there and continue to go much higher, perhaps reaching towards the 2700 level next. Alternately, some type of breakdown below the 2620 level could send this market down to the 2600 level rather quickly, and perhaps even lower than that if the number is bad enough. I don’t expect that’s going to be the case though, because quite frankly the jobs numbers have been very reliable over the last several years.
Beyond that, algorithmic traders have come back into the marketplace when it pulls back too far, and that might be the case if we get close to the 2600 level. In other words, I suspect that by the end of the day we are either higher than where we start, or at the very least have recuperated much of the losses that would be a result of the announcement.
S&P 500 Video 08.12.17
This article was originally posted on FX Empire