NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Slip a Bit After Jobs Number

NASDAQ 100 Technical Analysis

The Nasdaq 100 fell quite a bit during the early hours on Friday in reaction to the stronger than anticipated jobs number coming out of America. The United States added 265,000 jobs during the month of December instead of the expected 165,000. This, of course, has traders whining about the idea that the Federal Reserve may not cut as much as they expected, and this directly influences technology stocks.

That being said, this is a market that is hanging around the 50-day EMA and just simply trying to sort out what it wants to do, which to me, looks a lot like a somewhat hesitant and confused market. Now this doesn’t necessarily mean that we are going to plummet from here, but it certainly doesn’t look strong. If we could turn around and take out the 21,250 level, then I think the NASDAQ 100 has a chance to rally from here, which ultimately, I do think it does, but we’ve got some noise to chew through.

Dow Jones 30 Technical Analysis

The Dow Jones 30, of course being the laggard of the three anyways, looks a lot like a market that is trying to sort out whether or not it can hang above the 42,000 level. The 42,000 level, of course, is a large round, psychologically significant figure that a lot of people would be paying attention to, and therefore, you have to look at it through the prism of a market that perhaps is testing a major floor.

If we were to break down below there, then you have to assume that we test the 200 day EMA next, which of course is a major technical indicator. On the upside, we have the 50 day EMA that is slipping a bit, and therefore it could offer a little closer resistance. You really need the other indices to start taking off for the Dow Jones 30 to suddenly perk up.

S&P 500 Technical Analysis

The S&P 500 has fallen as well after initially trying to rally, and it looks to me like the S&P 500 will probably continue to be a little bit sluggish as well, with an eye on the 5800 level, which of course is a large round psychologically significant figure, and an area that has already shown itself to be rather supportive anyway. So, when I look at this, I have to assume that we’re just testing this support level whether or not it breaks is a completely different story. I don’t know that anything’s changed after the jobs never, I think we’re just working off some of this excess froth.

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