NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Celebrate Bad Economic News

NASDAQ 100 Technical Analysis

The Nasdaq 100 has rallied a bit after the jobs number in the United States came out at just 22,000 instead of 75,000 jobs added for the previous month. This is classic bad news is good news behavior coming out of Wall Street because they’re looking for cheap money to come down the road. The Federal Reserve is almost certainly going to cut in about 10 days. But really, the question is, will they be in a rate cutting cycle? The more numbers come out like this, the more likely that’s true, and Wall Street celebrates. Short term pullbacks are possible, but I think at least in the short term, we will probably find buyers.

Dow Jones 30 Technical Analysis

The Dow Jones 30 initially fell during the trading session but is now trying to rally and break out. Again, it’s the same situation where bad news is good news, Wall Street celebrates a poor economy, with 45,000 underneath being a major floor. As long as we can stay above that level, I think that the Dow Jones 30 still has a very real shot at going to 46,000, possibly even much higher than that.

S&P 500 Technical Analysis

The S&P 500 has reached all-time highs and it looks like it’s probably going to go much higher. Actually, out of the three indices, it’s probably the healthiest looking one. The 6,500 level was a significant resistance barrier, so one would assume that it ends up being a significant support level as well. Short-term pullbacks are very likely and possible, but again, I think you’ve got a situation where people are focusing on the Federal Reserve only. The question then becomes, once we get the meeting, does the Fed say something that spooks the markets? Because that’s been the pattern over several rate-cutting cycles. Right now, though, it looks like everybody’s willing to at least attempt to celebrate.

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