What Does NFP Hold In Store For The S&P
The whole world is currently focused on CPI readings as this is how we measure inflation. There is an equal number of market participants who will be closely watching the NFP figures this Friday as a weaker labour market will point towards lowering inflationary prints as well.
The bullish case for the stock market and indices would be a continued decrease in CPI figures as well as a weaker labour market. The bear case would see CPI increase and a stronger labour market.
Looking at the technical levels on the chart, the S&P500 has bounced off the 50% retracement level as drawn from the covid low and the all time high. It is trading close to an inflection point with the overhead trendline resistance. This level will be the deciding factor in whether or not we go higher or retrace much lower to complete wave 5.
The bullish case for the stock market and indices would be a continued decrease in CPI figures as well as a weaker labour market. The bear case would see CPI increase and a stronger labour market.
Looking at the technical levels on the chart, the S&P500 has bounced off the 50% retracement level as drawn from the covid low and the all time high. It is trading close to an inflection point with the overhead trendline resistance. This level will be the deciding factor in whether or not we go higher or retrace much lower to complete wave 5.
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