Nasdaq 100, Dow Jones 30 and S&P 500 Forecasts – US Indices Drop After NFP Numbers

NASDAQ 100 Technical Analysis

The Nasdaq 100 cratered a bit during the early part of pre-market trading on Friday as the jobs number came out basically twice what was expected and that has shown the market to be very sensitive to the idea that the Federal Reserve is going to keep rates higher for longer. Between that and the energy inflation concerns; it does make a bit of sense that traders are a little bit cautious at the moment. With this being the case, I think the 30,000 level is an area to see very closely. If we can close above it, that would be a good sign.

Dow Jones 30 Technical Analysis

The Dow Jones 30 did rally early, but it’s given back some of the gains to show signs of exhaustion. That’s not a huge surprise after the massive move that we had on Thursday, but I think a short-term pullback here opens up the possibility of a buying opportunity near the 50,750 level, assuming we can get that far, and I don’t think we will. I’m looking to buy a bit of a dip, so looking for value.

S&P 500 Technical Analysis

The S&P 500 has also fallen early in the session in reaction to those interest rates jumping, but ultimately, this is a market that I think continues to see the 7,500 level as a massive support level. I don’t think we break down below there despite the fact that the initial reaction to the move has been one of pretty brutal selling. I think that’s a short-lived thing in this market, and that we could have some opportunities to buy on the dip going forward.

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