SP500 is swinging between gains and losses after the release of the ADP Employment Change report.
NASDAQ is losing some ground amid a lack of positive catalysts.
Dow Jones is moving towards the nearest resistance at 36,350 – 36,500.
SP500 061223 4h Chart
SP500 is mostly flat as traders react to the ADP Employment Change report. The report indicated that private businesses added 103,000 jobs in November, compared to analyst consensus of 130,000. The weaker-than-expected report triggered a pullback in Treasury yields as bond traders bet on a more dovish Fed. The yield of 10-year Treasuries pulled back towards the 4.10% level, while the yield of 30-year Treasuries moved closer to the 4.20% level. The pullback in Treasury yields did not provide material support to SP500 today, and it looks that the index needs stronger catalysts to settle above the key 4600 level. Energy stocks were among the worst performers in SP500 today as traders reacted to the strong sell-off in the oil market, which was triggered by the EIA report.
The technical picture remains unchanged as SP500 needs to settle above the 4600 level to gain additional upside momentum.
NASDAQ 061223 4h Chart
NASDAQ is losing some ground as traders wait for additional catalysts. From a big picture point of view, NASDAQ remains stuck near the support level at 15,800 – 15,900.
If NASDAQ declines below the 15,800 level, it will head towards the next support, which is located in the 15,200 – 15,350 range.
Dow Jones 061223 4h Chart
Dow Jones managed to gain some ground in today’s trading session. The move was not strong as the number of gainers equaled the number of losers in the Dow Jones index today.
From the technical point of view, Dow Jones is slowly moving towards the nearest significant resistance level at 36,350 – 36,500.
Vladimir is an independent trader and analyst with over 10 years of experience in the financial markets. He is a specialist in stocks, futures, Forex, indices, and commodities areas using long-term positional trading and swing trading.