The S&P 500 index is down this Wednesday after downbeat ADP Employment Change numbers.
According to the data released by Automatic Data Processing Inc, the US private sector added only 330K jobs, where 695K had been expected. The previous month had seen 680K jobs added.
New concerns over the rise of the delta variant of the coronavirus contributed to the slowdown in hiring. The ADP’s Chief Economist is predicting more substantial gains in the future as this factor is seen to be a temporal one. This may explain the limited downside seen in the S&P 500 index’s move.
The index is trading 0.4% lower as of writing.
Technical Levels to Watch
The index’s downside move has allowed the candles to form a bearish harami pattern. Meanwhile, the price continues to trade between the 4422 resistance and the 4393 support. The harami pattern needs an outside day candle that breaks down the 4393 support to open the door towards 4368. 4324 and 4275 are additional support targets if the correction continues.
On the flip side, the 4422 resistance needs to allow the index to form new record highs. 4408 and 4453 are potential targets to the north, being situated at the 88.6% and 100% Fibonacci extension levels.