S&P 500: The S&P 500 is Stuck at a Trendline Resistance but a Breakout Could Take the Index Out of Bear Market Territory

 

Keep an eye on the FOMC minutes on Wed Jan 4 and U.S. nonfarm payrolls on Fri Jan 6. One shouldn't expect any big surprises from the minutes as Fed Chair Jerome Powell already said at the December press conference that the size of the rate increase at the next Fed meeting on Feb 1 would depend on incoming data. December nonfarm payrolls could shrink to 180k, compared to 263k in November.

The PCE index cooled down in November but the core PCE came in stronger-than-expected. The November ISM and PMI readings were both below 50, indicating a contraction.

The S&P 500 is stuck at a trendline resistance but a breakout could take the index out of bear market territory at 3,855. There are plenty of supports between 3,800 and 3,491 if the quant funds want to take the S&P 500 down to retest the OCT 2022 low. 

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to see the latest update!

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