Technical Analysis

S&P500 (SPX) Price Analysis – April 07, 2023

By LonghornFX Technical Analysis
Apr 7, 20233 min

Daily Price Outlook

The S&P 500 (SPX) is trading at 4,105.02, up by 0.36% in 24 hours. The S&P 500 increased after reducing losses, dismissing economic worries amid additional signs that the labor market is cooling ahead of the crucial monthly employment data expected on Friday.

Investors awaiting upcoming jobs data

According to economic figures coming out of the US that indicate slowing economic development, the services sector expanded at a more moderate rate in March as demand cooled, while US job openings fell to their lowest level in almost two years in February.

Additionally, initial applications for unemployment benefits decreased by 18,000 from 246,000 in the week ended April 1, surpassing experts' projections of 200,000 claims, fueling concerns that the labor market is cooling.

After this data, the US Dollar Index (DXY), currently trading at 101.95, is up 0.13%, holding onto its daily recovery gains. The US dollar increased slightly but is still close to two-month lows as a slowing economy suggests a pause in the US Federal Reserve's cycle of rate hikes.

Alphabet shares rose on Thursday as investors, concerned about a weakening economy, turned their attention to upcoming jobs data. It helped major US stock indexes conclude the day higher.

Investor attention is now on the more comprehensive data on non-farm payrolls, anticipated to have grown by 239,000 in March, down from the 311,000 jobs gained in the previous month. The report is due later in the day, which is Good Friday in the US, and the stock market is closed.

Stock News

A US court rejected the theater operator's appeal to withdraw a status quo order required for its proposal to convert preferred shares into common shares, sending AMC Entertainment (AMC) Holdings Inc. up 21%.

Investors expressed worries about a probable economic slump as Caterpillar (CAT), seen as the gauge for the industrial sector, dropped more than 2%, increasing its loss over the last three days to 9%.

In terms of earnings, Levi Strauss & Co. (LEVI) revealed fourth-quarter figures that beat Wall Street forecasts. However, the apparel company repeated its guidance among concerns over the outlook for the economy. Following the garment maker's announcement of a decline in quarterly earnings, the stocks fell 16%.

Daily Technical Levels:

 S&P500 Price Chart - Source: Tradingview

S&P500 Intraday Technical Levels

Support      Resistance

4075            4103

4060            4115

4048            4130

Pivot Point: 4088

S&P500 – Technical Outlook

The S&P 500 is currently experiencing strong positive momentum above 4,100, and has solid support at 4,030. However, there is a significant obstacle at 4,175 due to a double-top pattern which may cause resistance.

If the index manages to break past this level, it could move toward the next resistance at 4,170. Conversely, if the SPX falls below 4,040, there could be considerable selling pressure, leading to a decline towards the 3,920 and 3,840 levels.

Technical indicators, specifically MACD and RSI, both suggest a strong bullish trend. Investors are expected to focus on the 4,040 level, and if the candle closes above it, there is a good chance that the SPX will trend upwards today.


    * EUR/USD Price Analysis – April 07, 2023

    * GOLD Price Analysis – April 07, 2023

    * S&P500 (SPX) Price Analysis – April 03, 2023



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