Usa500 had a rough end last week, with a drop as traders reacted to Friday’s disappointing nonfarm payrolls figure. Specifically, the 126K US jobs added in March that fell well below analysts’ predictions of around 245K.
US equities couldn’t maintain Monday’s momentum with fears over an impending interest rate hike in the US with a strong dollar hurting American businesses and could ultimately lead to a slowdown in US economic growth.
The Usa500 since the start of April rose 0.49% and is in a potential phase change, from a warning phase to a bullish phase, trading below the 50-day moving average. Yesterday, the Usa500 initially rose but found enough resistance at 2078.50 to turn around and close in the red near the low of the day. Stochastic is showing a slight bullish momentum and below the mid line.
Expecting an upward move to a daily resistance at 2,106.25 on a break above a daily resistance at 2,088.50 (scenario 1) or a break below the 10-day moving average can push the Index down to a daily support at 2,035.25 (scenario 2).
Usa500 is a CFD written over S&P500 futures.