Last week the US payrolls data failed to alleviate uncertainty over the prospect of a near-term interest rate hike from the Federal Reserve (Fed). Data from the US Labour Department on showed that non-farm payrolls rose 173K in August, down from July’s upwardly revised gain of 245K. However, a drop in the unemployment rate to a near 7.5-year low and acceleration in wages kept alive prospects for a Federal Reserve interest rate increase later this month. The Fed is coming under pressure from emerging markets not to raise rates too soon as turmoil in China threatens global growth. The Fed has already indicated that the timing of a hike is largely dependent on economic data. The S&P500 plunged more than 2.0% since the start of the month and fell 6.3% year to date setting a bearish phase. The Index plunged during the course of last week with a narrow range, and closed near the low of the week on above average volume. The stochastic is showing bearish momentum and is below the 50 mid line. Expecting downward move to Year lows at 1,830.25 on a break below a daily support at 1,891.50 (scenario 1) or a bounce off the weekly support at 1,891.50 may push the Index back up to a weekly resistance at 1,973.00 (scenario 2). Usa500 is a CFD written over S&P 500 futures.