On Thursday, the S&P500 Futures (CME: ES) jumped higher by 0.89% as Federal Reserve officials pointed to a potential pause in rate hikes. Risk appetite sprouted as the Greenback lost its footing while risk assets gained. Today, the U.S. Non-Farm Payrolls will likely keep traders on their toes as they discern whether the data will warrant the less restrictive tone of the Federal Reserve.  

Technical 

The S&P500 Futures have trended higher, with the price navigating through an ascending channel pattern as the 100-day moving average distance extended below the price. Support and resistance were established at the 4115.25 and 4224.75 levels, respectively.  

Bullish momentum surged, taking the index above the resistance level with high volumes suggesting a strong appetite for the upside. Price action now trades at the ascending channel resistance. If bullish momentum persists, a breakout above the ascending channel pattern could see bulls aim high, with the 4321.75 level a potential point of interest.  

In contrast, if bearish traders re-emerge, price action could reverse from the ascending channel resistance. The 4115.25 level could come into play if downside volumes pick up steam. 

Summary 

It’s D-Day for the U.S. Labour Market watchers as the Non-Farm Payrolls are finally forthcoming. If the labour market strengthens beyond expectations, the S&P500 Futures could feel the pressure of higher borrowing costs and discount rates. The 4115.25 level could materialise if the market prices in another rate hike by the Federal Reserve. Alternatively, the 4321.75 level might become a destination for the index if the U.S. labour market cools.  

Sources: Reuters, TradingView