During a 6 day fall, dropping a total of 3.26%, (156.55 points), A possible change of direction spotted from yesterday; after closing at 3,991 the day before, the S&P 500 maintained a strong bullish bias that helped the index close higher at 4,012.32 yesterday. However, market bears ensured the the S&P 500 topped out at 4,028.3 and that by the end of the session, the market had marked out a distinct 3,969.19 to 4,028.3 range.
United States Core PCE Price Index (MoM) (Jan) is next today at 13:30 UTC.
The S&P upside coincides with further encouraging market factors as highly important Crude Oil Inventories data from United States beat analyst expectations of 2 million with a reading of 7.65 million. United States Initial Jobless Claims came out at 192,000, better than analyst estimates of 200,000 and improving upon the previous reading of 195,000.
On the flip side, United States GDP published yesterday at 13:30 UTC came out at 2.7, falling short of the 2.9 projections and continuing its decline from the previous 3.2 figure.
Technical analysis shows that S&P 500 is 25.03 points away from testing key resistance at 4,037.35. Peaking above this level could inspire market bulls and open the path to further gains. Trend and momentum analysis indicates that despite posting gains on yesterday, the S&P slid below its 50 day Simple Moving Average at 3,979.33 during the last session — an early indicator that a negative trend could be emerging. Analysis based on the asset volatility indicates that the S&P's lower Bollinger Band® is at 3,977.26, indicating that the market is oversold and fertile for new buyers.
With market volatility ebbing, the current technical outlook indicates the S&P will remain range-bound for the immediate future.
The S&P 500 shows positive signs, other assets are also on par: Nikkei is trading around 27,453 after ending yesterday's session at 27,100 (up 1.29% today).
Meanwhile, Hang Seng slumps 1.68% yesterday and closed at 20,351.
The market is looking forward to the release of new data: United States Core PCE Price Index (MoM) (Jan) is scheduled for today at 13:30 UTC. United States New Home Sales (Jan) scheduled to come out today at 15:00 UTC.
The S&P 500 has gained 4.95% since its lowest print of 3,577 earlier this year.