Bulls Fighting Back? Monthly Jobs Data Release Ahead

The U.S. stock market indexes were mixed between -0.2% and 0.0% on Thursday, after going down to support levels and rebounding before the closing bell. The S&P 500 index trades 8.5% below January 26 record high of 2,872.87. The Dow Jones Industrial Average was unchanged and the technology Nasdaq Composite lost 0.2% on Thursday. Overall, it was a relatively bullish trading session, despite negative daily changes.

The nearest important level of resistance of the S&P 500 index is now at around 2,640-2,650, marked by previous level of support. The next resistance level is at 2,660, marked by recent local highs. On the other hand, support level is at 2,600-2,610, marked by recent fluctuations. There is also an over year-long medium-term upward trend line.

The broad stock market continues its medium-term consolidation following late January – early February sell-off. There are still two possible medium-term scenarios – bearish that will lead us below February low following trend line breakdown, and the bullish one in a form of medium-term double top pattern or breakout towards 3,000 mark. There is also a chance that the market will just go sideways for some time, and that would be positive for bulls in the long run (some kind of an extended flat correction):

Slightly Negative Expectations Ahead of Data Releases

Expectations before the opening of today’s trading session are slightly negative, because the index futures contracts trade 0.2% lower vs. their yesterday’s closing prices. The European stock market indexes have been mixed so far. Investors will wait for some important economic data announcements: Nonfarm Payrolls number, Unemployment Rate at 8:30 a.m. The monthly jobs data release is usually followed by an increased market volatility. The S&P 500 index may extend its recent fluctuations along the above-mentioned year-long upward trend line. There have been no confirmed negative signals so far.