Market remains rife with geopolitical, economic and health related worries even with major US indexes, specifically S&P 500 ($SPX) and NASDAQ 100 ($NDX), rallied to a new all time high on Friday after Federal Reserve Chairman Jerome Powell indicated that the Fed was in no rush to hike rates at the central bank’s annual Jackson Hole symposium.
Though Powell’s message was dovish with no specific timeline provided, all eyes will turn to this coming Friday’s August Nonfarm Payrolls report this week, a key economic number he mentioned there’s room for improvement in the US job market.
Non-farm payrolls are seen rising by 665,000, which would still leave the economy about 5 million jobs short from the February 2020 level; while the unemployment rate should decline further to 5.2 percent, a new pandemic low. Meanwhile, the ISM PMI surveys should point to another month of strong manufacturing and service growth rates.
Here is what you need to know to start your week.
$SPX medium term trend channel remains intact, with no violation of its upper and lower bound trendline since the Bullish Reversal supported by its 50DMA highlighted in the previous week. $SPX has now traded neatly above its 20DMA over the past 6 consecutive trading session.
The immediate support to watch for $SPX this week is revised upward towards 4,455 level; a break of its 20D Moving Average along with the low of its recent trading week.
