S&P 500 started the session lower after a series of dismal economic data. The US Composite PMI slid to 2009 lows of 40.9 in March, with new orders and export sales dropping at record levels. March data consistent with -4% annualised GDP q/q change. The Services PMI dropped to 39.8 in March from 49.4 in February. The data collected between 12-27 March, indicated the quickest decline in output since data collection began in October 2009. TheISM Non-Manufacturing Employment Index registered at 47, well below the forecasts of 53.7.
The Unemployment Rate in the USA came in at 4.4% above the expectations of 3.8%. The Average Hourly Earnings registered in at 0.4% topping the expectations of 0.2%. Nonfarm Payrolls came in at -701,000, below expectations of -100,000 in March.
S&P 500 is 0.51% lower at 2509 as the correction wave from 2630 accelerates after yesterday’s rebound. Fundamental data weigh on the index while the technical outlook is bearish, and a settlement today below 2.500 might be the start of another leg lower.
On the downside, the daily low at 2,480 will provide immediate support for the S&P 500 index. A break below this support might open the way for 2,430 the low from yesterday’s trading session. If sellers break this level, then the next support stands at 2,407 the low from March 26.
On the other hand, the first resistance will be met at 2,534 the daily top. The next level to watch is the 2,567 high from April 1st trading session. A breakout higher might test the next resistance at 2,630 high from March 30 trading session.