Stocks moved lower after the “stronger” US jobs report, but there has been a reevaluation after looking at some of the details (see Adam’s post here).
Is it more of a Goldilocks scenario vs too strong as initially thought? Having said that, the market has to get over its bearish bias and take back some of the bearish technicals as well.
The major indices opened mixed but all 3 indices are now trading higher. A snapshot of the market currently shows:
- Dow Industrial Average is up 18 points or 0.05% at 37460
- S&P index is up 10 points or 0.22% at 4699
- Nasdaq index is up 28 point or 0.18% at14537.20
Technicallly, for the Nasdaq index it fell – and closed – below its 200-hour MA for the first time since November 1 yesterday. That MA comes in at 14599.32 (green line on the chart below). Getting back above that MA is needed to give the buyers some positive mojo from a technical perspective in the short/medium term. Be aware.
For the S&P index, it fell away from its 100-hour MA at 4745.62 but remains above its 200-hour MA at 4662.70. The bias is, therefore, a bit mixed but being below the 100 hour MA for the first time since November 1, puts the short-term burden of proof on the buyers to take the price back above the 100-hour MA. A move below the 200 hour MA would be more bearish going forward.