SPX500 and NAS100 both higher on Monday
Average hourly earnings could be an important number to watch on Friday
After trading above 2,788 at the beginning of last week, the market turned lower, trading through the previous swing high at 2,753 and swing low at 2,683.
Lower is the 2,529 level, which is where the market previously found support. This level is around the trend line off the April lows and coincides with the 200-day moving average.
If the market turns lower, this trend line and the 200-day moving average (lower orange line), which are currently tracking similarly, could be a potential level to watch for support. Below this is the 2,529 level.
Higher is the previous February swing high at 2,788 and the January high around 2,876.
Chart: SPX500, daily
The index recovered to marginally below the previous market high last week before turning lower.
Similarly to the SPX500, the market also broke below several areas of potential support last week (previous swing high at 6,851 and swing low at 6,691), although earlier today it has traded back higher through the previous swing high at 6,851.
Chart: NAS100, daily
Average hourly earnings
An important number coming out this week for equity indices may be the average hourly earnings number, which is due out on Friday as part of the employment situation.
Concerns regarding price and wage inflation – and consequently rising interest rates – may have contributed to the February market correction, after the average hourly earnings released in last month’s report beat consensus.