Waiting on the Jobs Report

Judging by the reaction to the recent weak economic data, bad July employment numbers on Friday have real potential to drive markets lower

By Paul Cherney

The Nasdaq has resistance at 1287-1298.52. The next resistance is at 1315-1350, with a focus at 1326-1339.

The S&P 500 managed to finish Thursday's session inside the band of support in the 887-878 area. The index has resistance at 897-934. There is a focus of resistance at 895-909.

Judging by the reaction to the content of the economic reports we have seen today and yesterday, a bad July employment report on Friday has real potential to drive markets decidedly lower.

Prints below Nasdaq 1247 on Friday will increase odds that any rebound will be short-lived and I would expect a retest of the 1212-1192 area within days.

Immediate support for the S&P 500 looks strong in the 853-835 area, but a print below 826 on Friday will increase the odds for a drop to print 800-775.

Cherney is chief market analyst for Standard & Poor's

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