Remember, the Fed wants to lower stock prices to reduce the wealth effect and help slow inflation. The SandP 500 opened lower to start Thursday’s session and then continued to decline. But by noon we started to see buyers coming back and trying to stabilize everything. But honestly, I think the only thing that kept the roof off my hands was that the market sold so much the day before, and of course that we get the next jobs on Friday. Advertisement Stock Markets Crash Again Buy Dips Now! After all, the non-farm payrolls report causes enough volatility in the stock market, and while the Fed has made it abundantly clear what they will do next, the reality is that the market is still trying to extrapolate. good news from all the numbers coming from America. In fact, one could say that this is once again a „bad news is good news” market. After all, when jobs are terribly bad, people get excited that the Federal Reserve might come to their rescue by easing monetary policy. Resistance Ahead I find it hard to believe that just one number would do that, so I look at it as a market where if it rebounds, I’ll short one so the signs of exhaustion start again. I think the level above 3900 will create a lot of resistance, so if we break above that would obviously be a very bullish sign. It would take a lot of movement from here, so I think more likely than not, if we rally, there should be a lot of short sellers. At the line, we can immediately break the bottom of the candlestick for the Thursday session, opening a move to the 3600 level. The 3600 level below is important support and should remain so. Ultimately, if we break there, it will open the doors to earlier selling pressure that could take this market below the 3,500 level next. Remember, the Fed wants to lower stock prices to reduce the wealth effect and help slow inflation.