NASDAQ 100 Technical Analysis

The NASDAQ 100 has drifted a little bit lower during the early hours on Thursday, as we continue to see a little bit of noisy behavior in this market. All things being equal, this is a market that’s been in an uptrend for a while though, and you could perhaps try to look at this market as being in a bit of a channel, but really at the end of the day, the one thing that you need to understand is that with the jobs never coming out on Friday, we have a lot of volatility just waiting to happen in the NASDAQ. The 50-day EMA is rapidly rising and looks very likely to continue to offer a little bit of dynamic support, as it currently sits at the 19,910 level, so buying on the dip, at least at this point, still looks to be the play.

Dow Jones 30 Technical Analysis

The Dow Jones 30 has dropped significantly down to the 50-day EMA, but perhaps more importantly threatening the 41,900 level. This is an area that you want to see held as support. If it does not, that could lead to more selling pressure.

Whether or not that actually happens remains to be seen and will probably be due to the bond markets, perhaps selling off and rates rising. But if that doesn’t do it, then the jobs number could. On the bounce though, this could end up being a nice buy on the dip type of opportunity. We are still very much in an uptrend. So, I don’t have any interest in trying to get short of this market.

S&P 500 Technical Analysis

The S&P 500, of course, looks very much the same as the other two indices. It tried to rally and then fell over. But the S&P 500 is probably the soundest of the three indices from a technical analysis standpoint. That being said, it doesn’t necessarily mean that it’s going to take off, just that it might be the first one to do so.

Keep in mind that not only do we have the jobs number on Friday, but we are in the midst of earning season, so that obviously has its part to play in the market. But as things stand right now, the trend hasn’t changed. So, it’s a one-way trade. It just comes down to whether or not you get a little bit of value presented to you before you start putting money into the markets.

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