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.
Technical Analysis
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.