The S&P 500 index tested new all-time highs this Tuesday but quickly fell to selling pressure after the ISM US Manufacturing Index for December 2021 fell to 58.7. The market consensus had been for a slight fall from November’s 61.1 to 60.0.
The JOLTS Job Openings fell from 11.09m to 10.56m, a steeper drop than analysts had expected. Details of the report provided by the US Department of Labor showed that a record 4.5million Americans quit their jobs in November.
According to the ISM Manufacturing Committee Chairman Timothy Fiore, the data shows that the US continues to operate in a supply-constrained environment, despite an increase in demand. Supply constraints arose from worker absenteeism, shortages of spare parts, supply chain problems from overseas and a high rate of company personnel changes.
Investors on the S&P 500 index responded negatively to the data, and the index is trading 0.22% lower.
S&P 500 Index Outlook
The bullish breakout from the triangle has been truncated at the 4818.62 resistance, which is now the new all-time high. The ascent must break this resistance and attain the 5004.30 mark (200% Fibonacci extension from the 16 November to 3 December swing) to be completed. To attain price completion, this move must transcend the 4853.37 and 4905.91 resistance barriers (141.4% and 161.8% Fibonacci extension levels).
On the other hand, an extension of the intraday decline brings 4744.08 into the picture. Additional targets to the south are found at 4715.99 and 4660.19, with 4600.19 depending on an extended decline to enter the picture.
SP 500: Daily Chart
Follow Eno on Twitter.