Weekly S&P500 Technical Analysis – US Labor Market in Focus | Forexlive

In terms of the S&P500 technical analysis, the struggle to break the
trendline that defined the bear market in 2022 is clear. Once the market approached the
trendline, it started to range with tentative price action until the big
miss in US
Retail Sales smacked the market down back to the previous resistance
now turned support in the 3900 price area.

What gave the market confidence
back was another beat in US
Jobless Claims highlighting the resilience and strength of the
labour market. In fact, the market bounced from the 3900 area and started to rally
the next day with even the Fed speakers confirming a 25 bps hike at the
February meeting.

Looks like this market is holding
on just on the labour market strength and at first signs of weakness there it
may all crumble.

Daily chart of the S&P500.

On the daily chart above, we can
see that the price reached the blue trendline and then fell back to the resistance now turned support in the 3900 price area as the US
Retail Sales missed expectations.

We can also see how the price
bounced back as US Jobless Claims beat expectations yet again and the price is
now again at the trendline. Will the bulls manage to break the trendline
this time and sustain a rally to the next resistance at 4175?

Looking at the 1-hour chart, we
can see the recent catalysts that pushed the market to the upside and then back
down with the miss in US Retail Sales. The strength in labour market data
is helping the bulls for now.

A break above the Retail Sales
high will give the bulls more confidence to keep charging and reaching new
highs.

15-minutes chart of the S&P500

Zooming in to the 15 minutes chart, we can see that there
are different probable scenarios:

· The price breaks to the
upside and starts a rally target the Retail Sales high or above.

· The price first pulls back to
the minor trendline and then starts to rally again following the first
scenario.

· The price breaks to the
downside the minor trendline and falls back to the support in the 3900 price
area.