The S&P 500 continues to see the 7,000 level as a major ceiling in the market, as we are waiting to see whether we can get a daily close above that level.
S&P 500
The S&P 500 broke above the 7,000 level initially during the trading session here on Tuesday but then broke down. All things being equal, this is a market that I think if we do pull back a little further, watch the 50-day EMA as a potential support level as it is also an uptrend line.
The 6,800 level of course is a floor. If we can break above the 7,000 level on a daily close, then I think the S&P 500 really takes off.
Economic Factors and Market Outlook
That being said, keep in mind this is a non-farm payroll announcement week. There will be whisper numbers, there will be the ADP. I think we have a situation where traders will continue to look for value in a market that quite frankly is sideways and choppy, but I do think it eventually makes a bigger decision.
The employment numbers that we do get for the week definitely will be the non-farm ADP, which is the private numbers. That might be extrapolated. There are plenty of central banks out there this week causing some noise as well, starting with the Australian central bank raising rates to 3.85% earlier in the day, but then we have the Bank of England, the Europeans both with an interest rate decision.
I think a lot of things are going on that could cause the market to move. Not only that, we have the earnings reports, but ultimately there is nothing here that really spooks me, and I think it is probably only a matter of time before we bounce and try to take out the 7,000 handle.