S&P 500 Pulls Back From Session Highs As Apple Tests Weekly Lows

Apple drives the S&P 500 to weekly lows

As the unemployment rate jumped from 3.5% in September to 3.7% in October, the S&P 500 gained support at the start of today's trading session. Traders were eager to wager that the Fed would become less hawkish as the unemployment rate rose. S&P 500, however, immediately lost impetus and went in the direction of the 3725 level support.

While the sell-off was still going on, Apple dropped below the $135 mark. The S&P 500 recently came under significant pressure due to the sharp decline in Apple stock. Tesla meanwhile drew nearer to its yearly lows.

PayPal experienced a 5% decline following the release of subpar fourth quarter guidance. The company anticipates that lower consumer spending will have an impact on its earnings, which is negative for the stock.

Ahead of the weekend, basic commodities equities have significant support, while tech companies are generally trending lower. Commodity markets are rising today on expectations that China may ease its zero-COVID policy. Freeport-McMoRan, the largest copper producer, increased 10% as copper prices rose above $3.60. As gold prices rose above the $1670 mark, gold producer Newmont Corporation saw a 7% increase.

The S&P 500 was under a lot of pressure this week despite gains in energy and basic commodities companies due to the sharp sell-off in tech shares. If the top technology stocks continue to decline, the market as a whole will not be able to recover.

Strong Resistance Awaited S&P 500 Near The 50 EMA

The S&P 500 keeps trying to close below the 3725 support level. The S&P 500 will go toward support at 3690 if it is able to settle below this point. The S&P 500 will be pushed toward the support at 3650 if the support at 3690 is successfully tested. If the S&P 500 falls below this mark, it will move in the direction of the next support at 3625.

To the upside, the S&P 500 must continue to trade above the level of 3725 in order to have a chance of gaining upward momentum soon. The S&P 500's subsequent resistance level is at 3760. The next resistance at 3805 can be tested if the test of the resistance at 3760 is successful. Since the 50 EMA is close by, the S&P 500 will probably encounter significant resistance between 3805 and 3815.