S&P 500 Index Rises Above Downbeat NFP Data to Hit Record High At 3693

Summary:

Downbeat Non-Farm Payrolls do nothing to stop the S&P 500 from hitting all-time highs, buoyed by the Energy Index which gained from the OPEC+ decision.

The S&P 500 and other US indices are pushing higher this Friday, with the S&P 500 rising to record highs after posting gains of 0.62% when filing this report. Investors ignored the downbeat November Non-Farm Payrolls report (NFP) and poured into stocks as anticipations of the passage of a renewed stimulus package grew.

The US Bureau of Labor Statistics reported on Friday that the Nonfarm Payrolls employment change in November rose by 245,000, which was lower than the market consensus of 480K and also lower than the previous number of 610K, which was revised lower. Labor participation dropped from 61.7% to 61.5%.

Economists at Jeffries point to the impact of coronavirus cases’ resurgence as the factor behind the disappointing NFP numbers for November.

The Energy Index was one of the star performers on the S&P 500 index, as it climbed 3% on the OPEC + alliance agreement.

Technical Levels to Watch

The S&P 500 is now in record territory, with the break of 3645 firmly established. The immediate target could be the 127.2% Fibonacci extension level at 3738.6, with 3848.3 (141.4% Fibo extension) also lining up as a potential upside target.

On the other hand, 3645.4, 3588.1 or 3528.9 could be seen as potential areas where dip-buying may look favorable. 3481.6, 3393.5, and 3335.5 are also potential targets to the south.

Further declines below these areas to the extent that 3282.2 is put at risk could negate the buying sentiment, with a drop below the triangle’s border posing a threat to 3228.4 and 3137.0 as well.