Analysts are currently divided on a question of what actually happened to SPX during Fridays’ trading session. On one side are those who are noting that strong jobs data impacted increased sentiment for the US stocks during the time while they were adjusting for slowdown in drop of Treasury yields, while on the other side are those who are simply saying that this market was strongly oversold and reversal was the only path forward. No matter who is right, clearly, all three events had their own impact on market sentiment.
At the beginning of the previous week S&P 500 reached its lowest weekly level at 4.217 points. During the whole week the index was holding around 4.230, while the final breakthrough occurred on Friday, when the index reached its highest weekly level at 4.321. It was a strong move to the upside, not so frequently seen on the market. Based on current charts, this move is a mark of a return to the higher grounds of at least 4.350, which is a sort of resistance line for SPX. The support line at 4.200 clearly resisted testing during the last three days of the previous week, which decreases the probability for SPX to return to this level to test it for one more time in the week ahead.
At the beginning of the previous week S&P 500 reached its lowest weekly level at 4.217 points. During the whole week the index was holding around 4.230, while the final breakthrough occurred on Friday, when the index reached its highest weekly level at 4.321. It was a strong move to the upside, not so frequently seen on the market. Based on current charts, this move is a mark of a return to the higher grounds of at least 4.350, which is a sort of resistance line for SPX. The support line at 4.200 clearly resisted testing during the last three days of the previous week, which decreases the probability for SPX to return to this level to test it for one more time in the week ahead.
