fundamental News - SP500
S&P 500 Index futures are edging higher shortly after the cash market opening as traders try to recover from yesterday’s potentially bearish closing price reversal top.
For a second session, weakness in the technology sector is a major drag on the benchmark index. Traders could also be reacting to mixed economic news. Flash Manufacturing PMI came in higher than last month, but missed the estimate. Flash Services PMI, however, came in lower than last month and the forecast.
Look for heightened volatility as volume continues to drop ahead of Thursday’s U.S. bank holiday. Volume is also expected to come in below average on Friday.
The main trend is up according to the daily swing chart. However, momentum is trending lower following the confirmation of yesterday’s closing price reversal top earlier in the session.
A trade through 4,743.00 will negate the closing price reversal top and signal a resumption of the uptrend. A move through 4,600.00 will change the main trend to down towards the 4-hourly 200-SMA at 4,584.38.
The direction of the S&P 500 Index into the close of Wednesday will be determined by trader reaction to 4-hourly 100-SMA 4,677.03.
expectation today: neutral