US economy added 295, 000 jobs in February despite the cold weather. However the strong job report ignited a big sell-off Friday as investors feared that strong economy growth will cause the Federal Reserve to raise interest rate sooner and higher. The next Fed meeting will be held in 2 weeks, and we will know then if the Fed will change its current accommodating money policy.
After touching the top boundary, S&P 500 index fell back to middle of its trending channel in the weekly chart. In the daily chart, the short term momentum is falling quickly and the MACD indicator showed a "cross below" pattern on Wednesday. This "cross below" pattern signaled that a short term correction is already in progress. From the daily chart, we can observe a strong support at around 2064, that is where S&P 500 index is right now. If this support does not hold, the next level will the the 200 day moving average which stands at 2000. At this moment, the uptrend in the weekly chart is still intact even with the short term consolidation in progress.
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| Weekly chart of S&P 500 index |
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| Daily Chart of S&P 500 index |
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