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Fan Yang

S&P 500 (SPX) Still Not Out of the Woods

Last Friday, the market was optimistic after a strong Non-Farm Payroll employment report. It beat forecast around 205K and came in at 313K (jobs added in February). Also, the January number was revised higher from 200K to 239K. 

The S&P500 $SPX jumped from a Thursday close around 2740 to a Friday close around 2786.60. This week however, after rallying to 2800, the index retreated.

SPX Daily Chart

(click to enlarge)

Bearish Momentum Still in Play:
- The bearish momentum, or the bearish sentiment that was created around the start of February is still here.
- This is depicted by the RSI tagging 30 and then holding under 60. 
- The 3/13 session bearish engulfing candle could be a sign that another bearish swing is coming.
- Anticipate more choppiness in March and a possible retreat back to the 2550-2600 area.