Spy Shows His Strength, After PCE Reports And Before Key Jobs Data: The Bull, Bear Case – SPDR S&P 500 (ARCA:SPY)

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the SPDR S&P 500 ETF Trust spy It traded around 0.3% higher on Monday at one point, temporarily breaching Friday’s high ahead of the US jobs report for March, which is expected by Department of Labor Friday.

Just above $411, the market ETFs hit a group of sellers that pushed the spy down from the day’s highs, and back into Friday’s trading range.

Analysts Expect The US unemployment rate for the last month came in at 3.6%, the same rate recorded in February. New jobs added are expected to decline to 235,000 compared to 311,000 jobs added in February.

With the market closing on April 7 on Good Friday, traders and investors will have to wait until the following Monday to see how the stock market reacts to the numbers. PCE price index data released last week showed inflation cooling, rising 5% year-on-year in February, down from 5.4% in January.

The PCE data caused the spy rate to rise by 1.41%. If the jobs data comes out better than expected, the market ETF could see similar bullish price action as traders begin pricing in a pause in the price rally.

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SPY scheme: SPY started trading in an uptrend on March 13th and has since made a consistent series of higher highs and higher lows. The ETF’s latest higher low was formed on March 28 at $393.69 and the most recently confirmed high of $402.49 was recorded on March 22.

  • If SPY traders fall on Tuesday, Monday’s high will mark the next higher high within the pattern. If that happens, the spy could find support at the 8-day exponential moving average, which has been pointing the ETF higher since March 21st.
  • The 50-day simple moving average (SMA), which crossed the 200-day simple moving average on February 2, is rising higher, indicating bullish momentum in the stock market. Both areas are likely to act as strong support if the spy enters a multi-day bearish cycle.
  • If SPY closes the trading day with a large upper wick, the ETF will print a shooting star candle, which could indicate lower prices are in the cards for Tuesday. If SPY closes the trading day near the high price of the day, it will print a bullish Marubozu candle, which could indicate higher prices or that a sideways trade is looming.
  • SPY has higher resistance at $414.89 and $420.76 and support below at $408 and $404.

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