The Nasdaq 100 is struggling to hold on to gains made earlier in the day, as the US Initial Jobless Claims data showed that 6648K persons had filed for unemployment benefits for the first time in the past week. The scale of the increase, which far surpassed the market expectations, underscores the great effect that the coronavirus outbreak is having on the employment situation in the US.
The jobless claims report leaves the Nasdaq 100 struggling to hold on to modest gains posted earlier today, and leaves it in danger of finishing the day in the red for the 3rd straight session. Focus now shifts to tomorrow’s NFP data, which would be the first real gauge of non-agriculture employment in the US that reflects the current coronavirus situation.
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Technical Outlook for Nasdaq 100
The Nasdaq 100 index is still up on the day by 1.32% in a trading session that has so far seen muted trading volumes. Yesterday’s lower close brought the index down to just below the 7508.9 support level. Today’s price candle would need to close below this support to confirm the breakdown of that level, which would then open the door towards the 7241.2 support level.
On the flip side, if the Nasdaq 100 can close above the 7508.9 support, this may allow it to stage a short term bounce towards the 7834.6 resistance. Ultimately, the markets may be waiting for tomorrow’s NFP data, so it is also possible that price action may remain muted and trade in a range that has 7508.9 and 7834.6 as its lower and upper barriers respectively.
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