The forthcoming trading week should be less exciting than this week, as the range math for many markets, many symbols of which may be opening near weekly lows, will likely facilitate sideways pricing more so than trending trades. That said, there may be some carryover trending character in the early part of the week before sideways pivot math and ranges that markets may need to digest set in place.
The S&P 500 just failed the 20-period moving average on a daily chart, a monthly pivot, and a monthly camarilla pivot with a wide spread between fast and slow fisher lines, setting up a bounce and overhead retest. Also, there was a transient “dip buy” signal on an intraday chart that was merely a test with no “market internals” support-yet. Similarly, Bitcoin is in a technical position with bullish divergences and a hammer-engulf 4-hour chart candle rejecting a monthly camarilla pivot, or reflecting a good place for short sellers to exit with a buyback order on volume spikes. No guarantees of any reversals are made herein, though.
Friday’s key event risk will be the U.S. jobs report for January, which should offer fresh insight into the health of the U.S. labor market. With the Federal Reserve expressing optimism over inflation rising this year and a brighter outlook for the economy, today’s NFP report will be in sharp focus. Markets expect the U.S. economy to have gained 180k jobs in January, with average earnings up by 0.3%, while the unemployment rate is expected to remain unchanged at 4.1%.
Of the nine markets I follow, the S&P 500, gold, crude oil, the Aussie dollar and bitcoin are setting up for sideways or rangebound behavior or pricing conditions for this coming week. Some are still bearish in technical indicators this Friday, similar to last Friday except from higher prices this time.