The Non-Farm Payroll report for today established a strong case for further recovery of the US economy, as 916K jobs were added.
This was nearly double last month’s figure of 468K, which was revised upwards, and also trumped the market estimate of 652K. The unemployment rate fell to 6.0%, down from last month’s 6.2%, in line with estimates.
On this Good Friday, trading volumes are muted on the US indices, but the Nasdaq 100 responded with a muted uptick to the news, adding 0.11% on market open.
The Nasdaq 100 is on course to finish the week on a strong note, having received an immense boost from US President Biden’s infrastructure spending plan, the payment of stimulus checks and the consistently robust vaccine rollout in the US.
Technical Outlook for Nasdaq 100
The break of the neckline of the inverse head and shoulders pattern on the daily chart signals the completion of the pattern, with an expected measured move that targets 13559.2. However, attainment of this target requires bulls to push the price past the 13344.2 resistance level. Beyond these levels, the all-time high at 13908.3 remains the barrier to beat for bulls, beyond which new all-time highs may be registered at the 127.2% Fibonacci extension level at 13928.7.
On the other hand, failure to break the current resistance at 13344.2 could allow for a pullback which retests the 13135.5 price support. 12973.9 and 12769.3 remain additional downside targets, along with 12489.7. New lows below 12003.6 require that the bears surpass the 5 March low at 12231.7.
Nasdaq 100 Daily Chart