NASDAQ, Dow Jones and S&P 500 Forecast – US Indices Wait for Non-Farm Payroll

NASDAQ 100 Technical Analysis

The Nasdaq 100 has been fairly quiet in the early hours of Thursday, which makes sense considering that Friday is non-farm payroll Friday. With this, traders will probably be a little cautious, especially considering that the market has surged over the last 4 or 5 days. Unless you feel like chasing the market, this is probably not the place to be a buyer. However, on a pullback, especially if we get near the 21,000 level, I suspect there will be people willing to catch the market and play value.

Dow Jones 30 Technical Analysis

The Dow Jones 30 continues to hover around the crucial 45,000 level. Unlike the Nasdaq 100, we have worked off some of the froth. I suspect this market will be waiting to see what happens with the non-farm payroll announcement. Short-term pullbacks will have plenty of support at multiple levels. 44,600 is an area to watch, but we could see support all the way down to 43,750. The 50-day EMA sits just below there and is rising, so from a technical analysis standpoint, that also has to be noted.

S&P 500 Technical Analysis

The S&P 500 is the only one that hasn’t pulled back or gone sideways at all. At least the Nasdaq 100 was steady this morning. At this point, I think the S&P 500 has places to be. We are at the top of what could potentially be seen as a channel. Those who like to trade channels might be a little wary of this, but this sets up for a pullback. I think the 6,000 level probably ends up being a support level, and then, of course, the 50-day EMA.

I have no interest in shorting any of the U.S. indices right now; they all are far too strong. Therefore, I look for that knee-jerk reaction to the downside after the jobs number and start taking advantage of it—assuming we even get it. The market, and this goes for all three, isn’t concerning at all until we break significantly below the 50-day EMA.

For a look at all of today’s economic events, check out our economic calendar.