S&P 500 Index Struggles to Retain Upside Bias on Weaker Jobs Numbers
The S&P 500 index is slightly lower as of writing, as US stocks respond in mixed fashion to a worse-than-expected Non-Farm Payrolls report.
The addition of 210K jobs, less than last month’s 546K and the consensus of 553K, has brought on expectations that the Fed could start to slow tapering. This expectation also comes on the back of the emergence of the first cases of the Omicron variant in the United States.
While these scenarios place a dovish expectation from the last Fed meeting for the year, research firm Pantheon Macroeconomics sees no change in the outlook for previous tapering, except results from the tests of the Omicron variant’s virulence and transmissibility are more disastrous than once thought. CEO of Pantheon Macroeconomics Ian Shepherdson feels the Fed is more concerned about inflation at the moment, with the jobs numbers constituting a secondary consideration.
S&P 500 Outlook
The 4-hour chart shows the price candle testing support at the 4538.25 support. A breakdown of this area brings 4425.95 into focus, with 4375.66 also serving as a potential target to the south.
On the flip side, a bounce on the 4490.93 support allows for a potential recovery towards 4636.94, with 4600 lining up to serve as a pitstop. Additional upside targets are found at 4700 and 4743, where the all-time high currently lies.