S&P 500 Index Nervous Opening As Unemployment Bites

S&P 500 turns lower after a positive open as the economic data continue to disappoint. The weekly jobless claims report showed that 5,245 million more people filed for first-time unemployment benefits last week above the expectations of 5,105 million. The U.S. Building Permits Change dipped to -6.8% in March from the previous -5.5%, while the Housing Starts came in at 1.216M below the expectations of 1.3M in March. The Philly Fed Manufacturing Survey came in at -56.6, well below the expectations of -30 in April.

President Trump announced that he would offer soon guidelines on how to reopen the economy by loosening some of the current restrictions on social and business activity. 

S&P 500 index dragged by United Airlines -10.08% at 28.65, American Airlines -7.97% at 11.31, Royal Caribean Cruises -6.86% at 34.46 and Delta Airlines -6.49% at 22.77. On the other hand “staying home,” stocks support the index. Netflix is 3.88% higher at 443.32, Amazon +3.51% at 2388, Abbott Laboratories +6.05% at 96.44 and NVIDIA +4.65% at 293.89. 

The CBOE Volatility index trading 1.219% higher at 42.13, the Dow Jones is 0.80% lower at 23291, while the Nasdaq is 0.45% higher at 6431.  

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S&P 500 Support and Resistance

S&P 500 is 0.06% lower at 2772 as the index correction from the monthly highs continues for the second consecutive day. The technical outlook remains bearish for the index as the recent rebound failed to break above the 50-day moving average. A close above 2866 might cancel the bearish momentum, while another rejection might be the start of another leg lower.  

On the downside, the daily low at 2,753 will provide intraday support for the S&P 500 index. A break below 2,753, might open the way for 2,707 the low from April 9 trading session. If sellers break this level, then the next support stands at 2,628 the low from April 8.

On the flip side, the first hurdle for the S&P 500 index will be met at 2,811 the daily high. The next level to watch is at 2,866 the 50-day moving average. A close above will give bulls the upper hand, and a move to 2964, the high from March 9 will be the next target.  

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