What’s Capping the Upside Right Now?
On the upside, the short-term pivot at 6831.60 is the first hurdle. That area has capped early bounce attempts and kept traders from chasing strength. Above it sit the two main tops at 6903.46 and 6920.34, levels that previously stopped rallies cold and remain the bigger test for any sustained upside. Until those are reclaimed, upside moves may continue to draw sellers looking to lock in gains.
How Is the Data Shaping Sentiment?
Economic data continues to muddy the picture. The delayed U.S. jobs report showed the economy shed 105,000 jobs in October and the unemployment rate climbed to 4.6%, the highest since late 2021. November offered some relief with a 64,000 job gain that beat expectations, but the numbers weren’t strong enough to reset bullish confidence. Traders see a slowing economy, but not one that demands aggressive de-risking — at least not yet.
Which Sectors Are Carrying the Load?
Sector action reflects that hesitation. Financials, energy, materials, and consumer discretionary are modestly higher, helping offset weakness elsewhere. Technology and communication services are lagging, reinforcing the sense that leadership is narrowing. This looks more like rotation and position-adjusting than a broad risk-on push.
What Are Individual Stocks Saying About Risk Appetite?
Single-stock moves show traders are still selective. Amazon is higher on reports of discussions with OpenAI, while Netflix ticks up as Warner Bros. Discovery and Paramount slip on takeover headlines.
Lennar’s sharp drop after weak guidance is a reminder that earnings expectations still matter. Lithium stocks are catching a bid after China’s policy move lifted prices, signaling that traders will still chase clear, commodity-driven catalysts.
What’s the Setup From Here?
Technically, the S&P 500 is stuck in a holding pattern, and the levels are doing most of the talking. The 50-day moving average at 6766.66 remains the first real test. As long as buyers keep stepping in above it, the pullback looks more like digestion than damage. A decisive break would likely put the intermediate pivot at 6712.69 in play and test how committed dip-buyers really are.