S&P 500
The S&P 500 initially tried to rally during the course of the day on Thursday, but found the area above 2100 to be a bit too resistive. This is not a huge surprise to me, because quite frankly we have the Nonfarm Payroll numbers coming out today and of course a lot of the market would be very concerned about what the potential reaction would be. With this, the shooting star doesn’t concern me, it just shows me that the market is placing a bit of value on this announcement. After all, the previous announcement was horribly short of expectations, and as a result we will be paying quite a bit attention to the jobs market in America to see how things are going. Simply put, the better the number, the better the reaction is going to be in this market.
NASDAQ 100
The NASDAQ 100 of course rallied as well during the day on Thursday, but turned right back around to form a shooting star. I believe this is essentially the same thing that was going on in the S&P 500, as people were essentially concerned about holding a position into the next trading session with the announcement coming out. I believe that the reaction will be the same, the better the jobs number the better the movement to the upside, so today should be vital. If we can break above the top of the shooting star from the session on Thursday, I believe this market will continue the move that we’ve seen recently to the upside. On the other hand, if we drop from here we will more than likely try to reach down towards the 4350 handle or so.
One thing I think you can count on is quite a bit of volatility, so regardless you will have to be able to deal with that. Longer-term, this market will probably favor the upside because of liquidity if nothing else.
