S&P500 - A Little Bounce off the Fibonaccie Resistance
Updated
As mentioned yesterday the 3923 level provided some resistance. There are 3 scenarios to play out now:
* A flirtation around this level for a few days providing some short term volatility
* A move upward to test the 4030 level
* Another go at the 3923 level with a breakout to the down side
I think at this level the 75% basis point future rate hike expectation by the Fed is priced in. The strong employment numbers will support the notion that the economy is still strong and the market expects shrinkage.
Sectors that saw a bounce were health care, utilities and consumer discretionaries.
Oil price heading lower, and the VIX dipping bode well for a move to the higher levels.
* A flirtation around this level for a few days providing some short term volatility
* A move upward to test the 4030 level
* Another go at the 3923 level with a breakout to the down side
I think at this level the 75% basis point future rate hike expectation by the Fed is priced in. The strong employment numbers will support the notion that the economy is still strong and the market expects shrinkage.
Sectors that saw a bounce were health care, utilities and consumer discretionaries.
Oil price heading lower, and the VIX dipping bode well for a move to the higher levels.
Trade active
Well, the little bounce pulled back to the Fib level on Friday. Will it try again? Or break the resistance?
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