The S&P 500 slipped marginally while the Nasdaq Composite edged higher as traders weighed a stronger-than-expected US jobs report. Both indices stayed above their 100-hour moving averages after a rally driven by dovish comments from Fed Governor Christopher Waller, keeping short-term buyers in control.
US stock indices traded mixed after a stronger-than-expected jobs report gave investors a mixed signal to digest. The S&P 500 dipped slightly, while the Nasdaq Composite posted a modest gain.
A strong employment report cuts both ways for equities. Continued job growth supports consumer spending and corporate earnings, but a tight labor market can also keep wage and inflation pressures elevated. That could push the Federal Reserve to hold rates higher for longer, pressuring the present value of future earnings — a particular risk for growth and technology stocks.
Moving averages favor buyers
Both indices moved higher this week, with the advance accelerating after more dovish comments from Fed Governor Christopher Waller. That rally carried both benchmarks above their respective 100-hour moving averages, shifting the short-term technical bias in favor of buyers.
The S&P 500 moved above its 100-hour moving average at 7,693.88 and is trading near 7,730.65. As long as the index holds above that level, buyers retain the upper hand in the short term.
A move back below the 100-hour average, followed by a break of the 200-hour moving average at 7,665.09, would tilt the short-term bias back toward sellers. On the topside, resistance sits at the August swing highs between 7,771 and 7,816, with 7,816 marking the index's all-time high.
Nasdaq Composite eyes its own record
The Nasdaq Composite also cleared its 100-hour moving average following Waller's remarks, with that level now near 26,295.87 as first support. The next major target sits at the August swing highs between 26,707 and 26,875. Clearing that zone would strengthen the bullish case and open the path toward the all-time high at 27,190.21.
A slip below the 100-hour average, and then below the 200-hour moving average at 26,161.20, would shift the short-term bias more decisively toward sellers. Buyers currently hold the advantage in both indices, but the August highs still need to break for the next leg higher to unfold.
Source: Investinglive
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