Since the establishment of financial markets there has been a market separation on bullish and bearish markets. Traders just invented the third option called the kangaroo market, in an attempt to describe recent developments of price movements. It refers to rare development of the price movements when the price of an asset goes strongly in one direction and then returns back to a starting position, all within one single trading day. It also reflects the level of uncertainty that is currently evident. The S&P 500 continues to be in a correction mood. The index was struggling to sustain the 6K level, however, the price moves from the previous week are showing that the market is slowly losing nerves. The worst week since September is behind, as analysts noted. On Monday, the index tried for one more time to reach the 6K resistance, and then finally reverted to the downside. The lowest weekly level was at 5.670, which was the last time traded in July 2024, while a total weekly loss accounts for 3,1%.
Jobs report posted on Friday, brought figures which were lower from market expectation, with a 151K in NFPs. The unemployment rate was also higher by 1pp, ending the month at 4,1%. This is not a good sign for the economy, adding to its high uncertainty over US Administration trade tariffs. Currently, trade tariffs are playing a crucial role when it comes to market sentiment. In this sense, the negative sentiment might continue, but unfortunately, also the kangaroo moves. The market is trying to find new grounds, which might take some time.
Jobs report posted on Friday, brought figures which were lower from market expectation, with a 151K in NFPs. The unemployment rate was also higher by 1pp, ending the month at 4,1%. This is not a good sign for the economy, adding to its high uncertainty over US Administration trade tariffs. Currently, trade tariffs are playing a crucial role when it comes to market sentiment. In this sense, the negative sentiment might continue, but unfortunately, also the kangaroo moves. The market is trying to find new grounds, which might take some time.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.