The S&P 500 continues to see a lot of noisy trading, but at this point in time, the market looks as if it is trying to find a bit of a floor early on Wednesday morning.
S&P 500
During the trading session on Wednesday, we have seen the S&P 500 fall initially in Asian trading but then turned around to show signs of life.
The 7,600 level looks to be an area of fairly significant support. It is not only previous resistance, but it's also where the 50-day EMA came into the picture as well. This indicator will continue to attract a certain amount of attention.
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Ultimately, this is a market that is in a longer-term uptrend. Despite the fact that interest rates have been somewhat elevated, the question now is whether or not traders are going to focus on the idea that the U.S. economy is strong, or if traders will focus more on the Federal Reserve possibly hiking. That has some ramifications for traders on Wall Street, but ultimately, this is a market that continues to be very noisy, although well supported.
Federal Reserve and the Jobs Report
And as we head to the Friday session, we will also have to keep in mind that Friday features the jobs report. The jobs report could be yet another reason to think that the Federal Reserve might tighten, or the jobs report ends up being very weak. That could have people thinking that perhaps the ability for the Federal Reserve to tighten might be somewhat limited.
On a breakdown below the 50-day EMA, we could go looking to the 7,500 level, which is also a large, round, psychologically significant figure as well. Ultimately, this is a market that I remain bullish in, but I also recognize we may get a wiggle here and there over the next couple of days.
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