In the latest reports, the highly anticipated US ADP Nonfarm employment change for May 2023 surpassed market expectations, coming in at 278k compared to the forecasted 170k. Additionally, the initial US jobless claims stood at 232k, slightly lower than the projected 235k.
Following the release of this data, the US 500 (SPX) Index experienced a decline below the supply zone levels of 4187 and 4192 in the 30-minute time frame. It traded at 4182 at the time of printing, prompting traders to evaluate the trading conditions ahead of the US opening session. It is essential for traders to closely monitor the current supply zone levels at 4192 and 4187, as well as the demand zone at 4174 and 4168, as these could provide valuable insights into the future direction of the index.
Based on the current price structure, there are two potential scenarios. The index may rally and reclaim the current supply zone, or it may decline further towards the demand zone at 4174 and 4168.
As we approach the US opening session, I extend my best wishes to fellow traders for a successful trading session. If you have any requests for analysis on your preferred trading product, please feel free to ask, and I’ll be glad to assist you. If you find my analysis helpful, I would appreciate your support by liking it. I welcome your comments and am open to discussing trading further.
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US 500 SPX 1 06 2023 , 11 05 08 PM[/caption]
