SP500: Short position moves down sharply

Fundamental analysis:

The S&P 500 index closed down 39.54 points, or 1.05%, at 3720.15 on November 3 (Thursday); Although the Federal Reserve raised interest rates sharply to curb inflation, resulting in a slowdown in domestic demand, the employment market remains strong. The initial unemployment benefit application report also showed that, as of the week of October 22, the number of newly applied unemployment benefits increased by 47000 to 1485000. The data had no impact on the October non farm employment report scheduled to be released on Friday, because it was not within its investigation cycle.

S&P SP500 - 4-hour K line chart shows:

Technical analysis:

The 4-hour chart shows that the power of high short positions fell sharply and then went down. The short-term decline did not stop, but continued to move downward. The MACD index was in the low order of short positions, and the RSI index hovered in the low order of short positions;

Empty turning point: 3732

Pressing: 3751, 3772

Support: 3706, 3688

Trading strategy: 3732 lower bearish, target 3706, 3688

Alternative strategy: bullish above 3732, target 3751, 3772