S&P and Nasdaq Composite Technical Analysis: The broader indices are mixed but what are the charts saying?

AI summary

<p>The broader US stock indices are trading mixed as investors digest the stronger-than-expected US jobs report. The S&P 500 is marginally lower, while the Nasdaq Composite is posting a modest gain.</p><p>A strong employment report can be both good and bad for stocks.</p><p>On the positive side, continued job growth supports consumer spending, economic activity and corporate earnings. On the negative side, a strong economy and a tight labor market can keep wage and inflation pressures elevated. That could lead the Federal Reserve to maintain higher interest rates—or even tighten policy further. Higher rates increase borrowing costs and can reduce the present value investors are willing to pay for future corporate earnings, particularly for growth and technology companies.</p><p>When the fundamental story sends mixed signals, the technical levels become especially important. Moving averages and prior swing levels help traders define three things: the market’s directional bias, where risk can be limited and where the next price targets are located.</p><p>In the video above, I examine the S&P 500 and Nasdaq Composite from a technical perspective following this week’s price action. Both indices moved higher this week, with the gains accelerating yesterday after the more dovish comments from Fed Governor Christopher Waller. Those advances carried both indices above their respective 100-hour moving averages, shifting the short-term technical bias more firmly in the buyers’ favor.</