Friday, May 4, 2012

Markets tank on poor employment statistics

Equity markets reacted negatively to weak non-farm payrolls and closed at session lows. At the closing bell today (May 4, 2012), the S&P 500 ended down 1.6%, the NASDAQ gave up 2.3%, and the DJIA retreated 1.3 percent.

/ES, 180 d 1h
The hourly bars chart of the E-mini S&P 500 Index Futures (/ES) is among the charts of market indices with interesting price action with respect to price channels. Depicted above, the chart shows that today’s selling pressure brought the contract into the support of a well-defined, 3-month price channel.

And while a break of the channel support line would be bearish, just below rests horizontal support of 1352.5 (the low of April 10) and 1354 (the low of April 23).

/NQ, 180 d 1h
Interesting technicals are also evident on the hourly bars chart of the E-mini NASDAQ 100 Index Futures (/NQ). Today’s low of 2625.25 came within a point of horizontal support from intra-day lows on April 23 and April 24. Price is also at an extreme level of divergence from the 200-period simple moving average since Feb 6th (which is as far back as the above chart depicts); the current difference between price and the SMA is -80 points.

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