Economists revised their estimates of U.S economic growth downward on Thursday after the government reported a jump in the trade deficit during December to its highest level in more than two years. The U.S stocks closed higher on yesterday session, encouraged by oil gains and shaking off concerns about Greece.
Today on the economic calendar we have from the U.S we have the nonfarm payrolls that expected to drop from 252K to 234K and the unemployment rate that is expected to stay unchanged at 5.6%.
Yesterday, the Usa500 initially fell but found enough buying pressure, near previous day low, to reverse and close near the high of the day. The Usa500 is at the starting point of the year 2,053.5 and is in an unconfirmed bullish phase. Stochastic is showing a strong bullish momentum.
Expecting upward move to 2,088.50 on a break above a key level at 2,062 (scenario 1) or a bounce off a key level at 2,062 could pull the index to a daily support at 2014.
Usa500 is a CFD written over S&P500 futures.