Eventful news week for the SPX:
Initial Jobless Claims; Expected:3000K Actual:3169K
Unemployment Rate; Expected:16% Actual:14.7%
Nonfarm Payrolls; Expected:-22,000 Actual:-20,500
The US has had an eventful first quarter, mostly having to do with the COVID-19 pandemic. This week the US was prepared to receive bad news in regard to jobless claims, unemployment, and NFP. Sadly there is bad news and worse news; the bad news is unemployment was expected to be 16% and came in at 14.7% along with NFP expected to come in at -22k and the actual numbers were -20.5k. However, the worse news is initial jobless claims were expected at 3000k and the actual numbers were 3169k, 2 out of 3 is better than expected which causes the SPX to rally to the upside. Looking at the monthly timeframe we see price looks to have found support at 2427 and looks to continue towards the upside with no signs of slowing down. It seems the US is on a slow and steady way to recovery.
Shifting over to our pattern timeframe we see the price has formed a lower low closing below our previous higher at 2400. This could be an early sign of a reversal; however, there is no confirmation just yet. Expecting price to continue towards the upside. Looking for a lower high to form at our 3140 levels; taking long entries until that level is reached. We will look for continuation or a reversal at this level.
