The S&P 500 did very little during the trading session, even though the number of digits was absolutely ridiculous. That the market missed half a million jobs in the estimate seems to have been cause for concern for about five minutes. I suspect most will agree that Wall Street needn’t worry about tightening anytime soon, as “full employment” is also one of the Federal Reserve’s mandates. As long as this is the case, we’re looking for cheap money here.
S&P 500 video 9/6/21
This has been the mantra for 13 years: “The Federal Reserve will save us”. With the job number as bad as it was, I think a lot of people are counting on the idea of loose monetary policy as far as the eye can see right now as the economic recovery continues to look very anemic. With that in mind, I think what we’re seeing here is just the continuation of the malaise that was so great over the past week.
After all, the majority of the bigger traders in the world took vacations this week, so there is likely a lot of volume missing too. Keep in mind that September is rather volatile at the beginning as we suddenly see big players getting back to work. With that I would expect a lot of rushing behavior, but as long as we can stay above both the uptrendline and the 50-day EMA, chances are there will be plenty of buyers on dips.
You can find an overview of all today’s economic events in our economic calendar.
This article was originally published on FX Empire