By Paul Cherney
The Nasdaq printed below 2188 and the index moved lower in the session. The price action did not produce the kind of readings which I usually see when a market is about to tumble which leaves the door open for a headline reaction to the February employment report. The report will be released at 8:30 pm EST. All the interpretation of the jobs report will take place before the opening bell on Friday, so by 9:30 a.m. ET, if the markets are convinced that a Fed rate cut is a given, there could be some discounting of a March 20th rate cut (read: higher equity prices).
There is still the potential for good gains in the Nasdaq on Friday especially if the markets embrace the notion that it is time to start discounting a rate cut by the Fed. Immediate resistance for the Nasdaq is 2188-2204, then 2249-2287, then 2314-2351. The Nasdaq has stacked layers of support 2159-2111 and then 2129-2071.
The S&P 500 has immediate support 1253-1240. Considerable resistance is evident in the 1274-1293 area.
Intraday observance: The S&P 500 has a layer of resistance 1267.42 - 1272.76. A move above this level would probably garner some follow-through.
Anytime prices move above a layer of resistance, that layer is then considered support. Anytime prices move below a layer of support, those prices are then considered resistance.
Cherney is Market Analyst for Standard & Poor's