NASDAQ Index, S&P 500 and Dow Jones Forecasts – US Indices Crumble After Non-Farm Numbers

NASDAQ 100 Technical Analysis

The Nasdaq 100 has plunged after the jobs number came out much weaker than anticipated, as traders are a bit shocked. That being said, keep in mind that a lot of these technological companies like lower interest rates and interest rate expectations have changed radically. All things being equal, this is a market that does have support underneath, especially near the 22,500 level. The market also looks as if it is trying to perhaps come back a bit from the froth that we had seen previously. So, this all works out okay. The question is, do we give up the 50 day EMA? If we do, we could see further downside pressure.

Dow Jones 30 Technical Analysis

The Dow Jones 30 looks pretty bad, truthfully. I do think that this is a market that’s going to be difficult to get bullish on. We need at the very least a little bit of stabilization before you start buying again. I’m not quite ready to start shorting because, quite frankly, the move has been so strong before this that despite the fact that it looks horrific on Friday, the reality is that we are still likely to see a situation where traders will look at this as a potential value play, but we’ll have to wait.

S&P 500 Technical Analysis

The S&P 500 tests in the 6200 region is an area where it is support. If we break down below there, then the 6,150 level offers support as well, especially with the 50 day EMA hanging around. The size of the candlestick is a bit horrific early in the session, but these non-farm payroll announcements tend to get faded given enough time. So, because of this, I’m not willing to short yet, but this is a market that you just need to be patient with and look for your opportunity as it comes. It may be down at the $6,150 level.

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