The Nasdaq 100 rallied on a weaker-than-expected jobs number in the United states on Friday. The bullish momentum remains in this market.
NASDAQ 100
The Nasdaq 100 rallied a bit during the trading session on Friday as the jobs report came out weaker than anticipated. In fact, the United States lost 23,000 jobs instead of the expected addition of 85,000 jobs, and that had Wall Street celebrating. They're looking for bad news is good news to get some more loose interest rates coming out of the Federal Reserve.
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That being said, there are a lot of different things going on at the moment, and you cannot just simply think that the Federal Reserve is going to start cutting rates based on the economy. After all, we have to worry about inflationary shocks. Specifically, inflationary shocks coming out of the Middle East and the Persian Gulf. As long as that is a potential problem, it does put the Federal Reserve in a very difficult situation.
Bullish Flag Formation and Key Technical Levels
That being said, the Nasdaq 100 looks as if it is trying to form some type of bullish flag, and that is part of what I am looking at here. Short-term pullbacks I believe, are opportunities for those who are patient enough. This is a market that recently had a selloff and then did a huge V-shaped bottom from the roughly 200-day EMA level and the important 27,000 level.
The 30,000 level above has offered some resistance multiple times in the past, so I'm watching that area as well. The Nasdaq 100 is still positive from what I see. I just think that we may have a little bit of choppiness ahead of us.
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