A drop in the initial jobless claims for the week ended July 31 has allowed the S&P 500 index to experience some recovery after yesterday’s modest decline.
The S&P 500 index is up 0.34% as of writing. This move comes after the Department of Labor reported a drop in first-time claims for unemployment benefits from 399K to 385K.
There was a very marginal drop in the 4-week average, with continuous jobless claims also dropping by 366,000 to 2,930,000 for the week ended July 24. This number fell below forecasts of 3,260,000. The mood on the S&P 500 can be described as one of cautious optimism, ahead of tomorrow’s jobs numbers for July.
Price continues to trade in the range formed by the 4422 resistance and the 4393 support. The price pattern favours the bulls, and could lead to a break of the 4422 price ceiling. A breakout targets 4453 initially, with 4561 (127.2% Fibonacci extension) lining up as a potential upside target for the future.
On the flip side, a breakdown of the 4393 support negates the ascending triangle, opening the door for a decline towards 4368 initially. A further drop towards 4324 or 4275 marks a deeper correction, which could also open the door towards 4257.
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This post was last modified on Apr 30, 2024, 18:01 BST 18:01