Stock Markets Eagerly Await Jobs Number

S&P 500 Technical Analysis

The S&P 500 has gone back and forth during the course of the trading session on Thursday as we await the jobs number. That being said, the market is a little extended at this point so I would not be overly surprised if we got some type of pullback. The 4500 level would of course be an area that a lot of people would pay attention to, as the area is a large, round, psychologically significant figure, and an area where the 50 Day EMA is racing towards.

The 200 Day EMA is sitting just below the 4400 level, so that also could offer a bit of support. Remember that the US indices are not designed to fall for very long, as they are market cap-weighted, and therefore you need to be very cautious about trying to short the market. The jobs number will throw a lot of volatility into this market on Friday, so therefore you need to be cautious about putting on any type of big position.

When I look at this chart, it is hard to notice anything other than a bit of an overstretched condition, so a pullback does offer a little bit of value, something that the market desperately needs at this point. The market will continue to be very noisy, but I do think that eventually, we go higher because of Wall Street’s belief that the Federal Reserve will bail them out eventually. Whether or not that is the case is completely different, but at this point it certainly looks as if Wall Street believes that we are going higher over the longer term.

S&P 500 Forecast Video 01.04.22

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