Good unemployment data leads the SP500 and the Dow Jones to set new all-time highs

April 06, 2021 15:00

After the Easter holiday, only the US markets were open. Despite the lack of activity in the European market, the SP500 and the DJI30 set new all-time highs yesterday. This further prolongs the spectacular rise that the North American stock markets have experienced in recent years, with an upward trend that lasts for more than 10 years. 

These increases were supported by the good employment data from last Friday, which were not only better than expected, but far exceeded market expectations. The NFPs showed the creation of 916,000 jobs compared to the 647,000 expected, while data from last February was revised, showing an additional increase of 89,000 jobs, reaching a total of 468,000.

This good data once again shows the strength of the US economy. Together with the current Fed stimulus programs, aid from the federal government, and positive expectations for the future thanks to the vaccination program, it is not surprising that the markets are boosted when it comes to these increases.

The Nasdaq is finally seeing a rise, and although it has not yet recovered its historic highs, companies such as Microsoft or Facebook have reached new historical highs despite problems such as Facebook’s recent data leak of several million users.

If we look at the NQ100, technically speaking, it is at a very interesting point, as it is currently fighting to overcome its current resistance level (green) after breaking the short-term bearish trend line (in dotted red) which has led him to make 4 consecutive raises.

The break of this level, would open the doors to seek again its zone of historical maximums reached last February since a major correction began due to the increase in US bond yields.

If the price is not able to break above this level, we could find a rebound in search of its 18-session black moving average that would currently be its first support level in the zone coinciding with the 23.6% fibonacci level.

Source: Nasdaq daily chart of Admiral Markets MetaTrader 5 platform from January 6, 2020 to April 6, 2021. Taken on April 6 at 1:15 PM CEST. Note: Past performance is not a reliable indicator of future results, or future performance.

Price evolution of the last 5 years: 

  • 2020: 43.64%
  • 2019: 35.23%
  • 2018: -3.88%
  • 2017: 28.24%
  • 2016: 7.50%

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