S&P 500 Slumps After Hitting 61.8% Fibonacci Retracement

The S&P 500 has pulled back a bit during the trading session on Thursday as we continue to see a little bit of noisy behavior in the market. We had bounced enough to hit the 61.8% Fibonacci retracement level during the previous session, which also coincided quite nicely with the 50 day EMA. With this being the case, the market is likely to see a lot of noisy behavior due to the fact that not only do we have that situation, we also have the 4500 level as previous support, so it does make sense that we get noisy in this area.

S&P 500 Video 04.02.22

The 50 day EMA above is offering resistance, so if we were to break above there it is likely that the market could go towards the 4650 handle. That being said, we have a major cause of volatility during the trading session on Friday as well, being in the form of the jobs report. Central banks around the world have reported this week, and people are going to measure whether or not the Federal Reserve is going to continue to tighten, or if the jobs report could give them a little bit of “cover” for not being quite as hawkish.

A couple of economic announcements over the last couple of days have also suggested that the US economy is slowing down, so all of us will be listening to the latest comments coming out of the Federal Reserve due to the fact that it is probably the most important game in town. The markets have also had to deal with the poor earnings results that some of the bigger companies have reported.

For a look at all of today’s economic events, check out our economic calendar.