June S&P is seeing a fairly strong response to the as-expected jobs number and is breaking through the 38% retracement level at 1420 early today. The contract had broken past that level yesterday but failed to close above it so today's close will be important for the bullish case.
It would be unusual for the market to stage a strong recovery after the harsh decline that was seen last week but a close above that retracement level would be very encouraging to the bullish case. There's also the point that the contract decline to much longer-term retracement support at 1370 and recovered from there.
The look on the weekly chart is that this decline was just a correction of the larger bullish trend and not the start of a long-term decline. So for now the focus on the ability of the market to close the session above 1420. Failure to do that will put the focus back on another test of the recent lows at 1384.
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