Wall Street awaits important unemployment data
After a start to the week without references in the United States due to the festive day, in the sessions on Tuesday and Wednesday we could see how Wall Street has traded practically flat during both sessions. Tuesday featured mixed results, with slight falls of 0.09% and 0.05 in the Nasdaq and the SP500, while Dow Jones scored a 0.13% increase during the session.
Meanwhile, in Wednesday’s session, we could also observe a practically flat close in a session in which the three indices closed positively with slight increases of 0.14% for the SP500 and the Nasdaq, whereas the Dow Jones rose by just 0.07%. This represents a clear sign that US investors are waiting for the publication of the unemployment data corresponding to the month of May tomorrow, along with the weekly unemployment report. The possibility of better than expected data could be interpreted as a strong economic rebound, which in turn could bring back the fear of inflation.
If we focus on the Nasdaq, in the daily chart we can see that it is currently fighting to recover an important level of support and resistance that could open the doors to a possible rally to 14,000 points and an attack towards its current level of all-time highs.
Source: Admiral Markets MetaTrader 5. NQ100 daily chart. Data range: February 24, 2020 to June 3, 2021. Prepared on June 3, 2021 at 12:45 CEST. Keep in mind that past returns do not guarantee future returns.
If we focus on the H4 chart, we can see how both its MACD indicator and the Stochastic are losing steam at this resistance level, which could lead the price to pull back to its 200 red average of H4 to seek momentum. The loss of this important support level could cause a further correction to the area of previous lows around 13,360 points.
Source: Admiral Markets MetaTrader 5. NQ100 daily chart. Data range: from March 16, 2021 to June 3, 2021. Prepared on June 3, 2021 at 12:45 p.m. CEST. Keep in mind that past returns do not guarantee future returns.
Evolution in the last 5 years:
- 2020: 43.64%
- 2019: 35.23%
- 2018: -3.88%
- 2017: 28.24%
- 2016: 7.50%
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