The S&P 500 Hits a New All-Time High Following Weak US Services Data

An Unforgettable Event Elevating Trading Education 

The S&P 500 set a daily low during the European session at 5,501, finding buyers up to a new all-time high at 5,523. Currently, the S&P 500 is trading at 5,515, gaining 0.14% on the day.

Disappointing US economic data set the tone in the markets. Today’s economic data has been weak overall, falling short of expectations and thus increasing the likelihood of a Fed rate cut in September. These results have led stock markets higher.

During the week of June 28th, weekly jobless claims rose to 238,000, up from the previous 233,000. This result exceeds the 235,000 expected by consensus analysts.

According to information from the Automatic Data Processing (ADP) Research Institute of the United States, 150,000 new jobs were created in June. This figure falls short of the 160,000 anticipated by the market.

The Institute for Supply Management (ISM) Services PMI has fallen to its lowest level in four years, standing at 48.8 in June, down from 53.8 in May. The figure disappointed as a marginal decrease to 52.5 was expected.

Investors will be looking for signals providing greater clarity on monetary policy when the Federal Reserve minutes are released later today, just before the market closes.

Technical Levels in the S&P 500:

The S&P 500 maintains its upward trend, establishing a short-term support at 5,501, today’s low. The next support is at 5,470, provided by the 50% Fibonacci retracement. We see the first resistance level at 5,590, in confluence with the 161.8% Fibonacci extension.

Furthermore, we can observe other significant levels on the chart. At the 5,553 level, we have intermediate support that coincides with the upward trendline formed since mid-June. This level has been tested multiple times, giving it greater relevance as a support point.

In terms of resistance, besides the mentioned 5,590, there is another resistance at 5,523, coinciding with the previous high reached before the latest correction. This area could act as a barrier in the short term before the index attempts to reach higher levels.

Finally, on the hourly timeframe, Fibonacci retracement levels continue to be respected, suggesting that traders are using these key points for entry and exit decisions.