The major US index was trading soft last week.
Heading into Friday’s close, price action was back near the 3000 level. For now, a cccc However, it also raises the odds of a downside breakout.
We expect the S&P500 to maintain a soft footing for the most part of the week, heading into Friday’s payrolls report. For now, with the estimates somewhat bullish, it might be support for the S&P500. But it will put the index within the range with the upside level at 3200.
We can only wait for one of these levels to break for the direction in the trend to be set.
There is a strong support level near the 2965 and the 3000 level. Therefore, we might expect another test to this area. However, the odds of the S&P500 breaking lower below this level is limited for now. Therefore, we could expect to see the medium-term direction moving upward eventually.