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Usa500: Inside day in a potential phase change

U.S stocks couldn’t maintain Monday’s momentum as traders take their signs from bearish action overseas on the last day of the first quarter. Things will be relatively quiet on the economic and earnings fronts.

We have a busy data week ahead of us, but many investors will be focusing on Friday’s release of nonfarm payroll data for March. The FOMC members continue to point at the labour market and particularly wage growth as a “data trigger” for the first-rate increase. This latest reading of the labour market could bring expectations back into June or push them out to the end of the year.

The Usa500 last month fell more than 2.0% and is in a potential phase change, from a bullish phase to a warning phase, trading below the 50-day moving average. Yesterday, the Usa500 fell on a narrow range day that created an inside day and close near the low of the day. Stochastic is showing a slight bullish momentum.

Expecting a downward move to a daily support at 2,035.25 on a break below previous day low at 2,056.00 (scenario 1).

Usa500 is a CFD written over S&P500 futures.