Investors on the S&P 500 futures continue to hold on stubbornly to gains despite yet another week of calamitous initial jobless claims numbers. The number of Americans filing for unemployment benefits last week was 3.169 million, which was higher than the 3 million that the markets were expecting. However, it was lower than the previous week’s figure, which was revised upwards to 3.846 million.
As it stands, more than 31 million Americans have filed initial jobless claims in America, and along with yesterday’s ADP number, showcases an unprecedented unemployment situation not seen in decades in the United States.
However, investors seem to have priced the bad numbers into their trading and appear focused on other positives surrounding the global economy and the reopening of the US economy. Today, the Chinese customs department released trade balance data that showed a growth of 3.5% in exports, when markets expected a drop of 15.4%.
The S&P 500 and other US markets are receiving a boost from the better-than-expected earnings from Netflix, Etsy and Lyft. The index has just opened and is trading 1.46% higher at 2890.1.
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Technical Outlook for S&P 500
The S&P 500 index has now regained the ground it lost yesterday following a bounce from the 2844.3 support level. It is once more aiming to re-establish the move towards the resistance zone which has the 2961.4 price level as its lower barrier. However, it has to contend with pitstops at 2898.2 (low of April 30 and high of May 5) and 2937.7 (61.8% Fibonacci retracement level).
Failure to attain the resistance zone may allow for a retest of the 2844.3 support level, with possibilities of a breakdown towards 2707.7. The resistance zone is where point D of the harmonic pattern lies. If price is able to cross this zone and push beyond 31028.3, this negates the expected reversal point from point D. Otherwise, a reversal from point D completes the harmonic pattern and targets the support areas previously mentioned.
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