Strong labor market data bullish for SP500
US new jobs grew and worker compensation remained at 10-year high in September. Will the SP500 recovery continue?
Recent US economic data were positive: the employment cost index remained at 2.8% over year in September, a 10-year high. Private sector wages and salaries grew even faster: 3.1% over year. The private sector added more new jobs in October than expected - 227,000 versus 202,000 forecast, according to payroll firm Automatic Data Processing. And a week earlier the Bureau of Economic Analysis reported the US economic growth slowed less than expected in the third quarter: GDP grew 3.5% after 4.2% over year growth in the second quarter when a 3.3% expansion was forecast. Positive US data are bullish for SP500. However a weaker than expected October nonfarm payrolls report, due today at 14:30 CET is a downside risk which may weigh on US growth prospects.
On the daily timeframe SP500: D1 is poised to test the 200-day moving average MA(200) from below.
Technical Analysis Summary
Position Buy
Buy Stop Above 2763.19
Stop loss Below 2602.98
US new jobs grew and worker compensation remained at 10-year high in September. Will the SP500 recovery continue?
Recent US economic data were positive: the employment cost index remained at 2.8% over year in September, a 10-year high. Private sector wages and salaries grew even faster: 3.1% over year. The private sector added more new jobs in October than expected - 227,000 versus 202,000 forecast, according to payroll firm Automatic Data Processing. And a week earlier the Bureau of Economic Analysis reported the US economic growth slowed less than expected in the third quarter: GDP grew 3.5% after 4.2% over year growth in the second quarter when a 3.3% expansion was forecast. Positive US data are bullish for SP500. However a weaker than expected October nonfarm payrolls report, due today at 14:30 CET is a downside risk which may weigh on US growth prospects.
On the daily timeframe SP500: D1 is poised to test the 200-day moving average MA(200) from below.
- The Parabolic indicator has formed a buy signal.
- The Donchian channel indicates downtrend: it is tilted lower.
- The MACD indicator is below the signal line with the gap narrowing. This is a bullish signal.
- The RSI indicator has developed a bullish divergence.
Technical Analysis Summary
Position Buy
Buy Stop Above 2763.19
Stop loss Below 2602.98