With improving PPI data, buyers returned to the S&P 500 on Thursday. The challenge now will be can they follow through and maintain an upward movement going into the weekend which would be a sign of confidence.
After the dramatic move lower in the S&P 500 on Wednesday, the expectation would be for this market to catch its breath on Thursday. This means another large move lower would not be expected. However, it's important to keep in mind that on Thursday PPI will be released and this could create more dramatic volatility to the downside.
The stage is set in the S&P 500 for Wednesday's CPI report. The bias for this market is to move higher but it's important to keep in mind when this result comes out the market reaction is 50-50.
With the market focusing on the CPI numbers coming out on Wednesday, a quiet day in the S&P 500 is expected for Tuesday.
Buyers return to the market on Friday in the S&P 500. The challenge is can they follow through on Monday. This is the action that you would be looking for if indeed momentum is building on the buy side.
The stage is set in the S&P 500 for Friday's job report. On Thursday the S&P 500 overreacted to comments made by the Fed presidents. When you have this type of report on Friday, the market reaction on Friday is 50-50.
The expectation for Thursdays price action in the S&P 500 is for movement to the upside but not a large move based on the structure shown on Wednesday.
After the break lower in the S&P 500 on Tuesday, the expectation for Wednesday is a rest day as the market waits for additional job information in the latter part of the week.
After Monday's action in the S&P 500, a dramatic lower move would not be expected for Tuesday.
The bias for the S&P 500 remains bullish. However, the price structure as the market finish trading for the week is potentially bearish as discussed in the video. Although will be closed on Friday it will be interesting to see how the market reacts to fundamental information on Friday when it opens again 5 o'clock Chicago time Sunday night.
How the S&P 500 futures market finishes on Thursday will provide us with clues about the level of confidence from buyers as we go into additional information on Friday when the markets going to be closed and into a holiday weekend.
The expectation for the S&P 500 is an inside day on Wednesday as the market evens up midweek.
The S&P 500 market structure after 2 days of selling implies reaching a level that buyers may return to this market. Be cautious on the short side on Tuesday
Friday's price action in the S&P 500 although slightly weaker indicates a lack of selling that was expected based on Thursday's price action. This means for Monday look for a sideways to only slightly lower movement in this market.
How confident is the S&P 500 going into this weekend. Thursdays action implies profitaking. Friday's close will be a barometer of buyers level of confidence going into the weekend if we have a strong close.
After Wednesday's price action in the S&P 500, as the market continues to respond in Asia and Europe to the Fed comments, the expectation would be follow through to the upside but not as big a range that was created on Wednesday.
The S&P 500 futures market is getting ready for the Fed announcements on Wednesday. It remains in a neutral structure near term and bullish bias on a longer-term basis. It is 50-50 in terms of how the market will move on Wednesday.
The S&P 500 is the market in waiting for information to respond to and the primary focus is on the Fed announcement on Wednesday. The market needs an excuse to do something and right now that excuse is not there. The bias for this market is still to the upside.