June E-mini NASDAQ-100 Index futures are trading flat early Friday as investors await the release of the May U.S. Non-Farm Payrolls report at 12:30 GMT. Though the pace of job growth is expected to have slowed for the month of May, economists say the labor market remains strong, even as parts of the economy have weakened.
Trading was choppy at the start of trading Thursday with investors divided on recession calls and if the Federal Reserve may be positioned to take a break from its interest rate hikes, according to CNBC. But stocks rallied into the close, finishing near session highs, as investors saw value in tech shares and other beaten-down names in this year’s pullback.
Looking Ahead to Friday…
Today’s jobs report is expected to show the economy added 328,000 jobs in May, down 100,000 from April, according to a Dow Jones survey. Consensus estimates call for wages to rise by 0.4%, a faster pace than April’s 0.3% increase.
Traders, but more importantly, the Fed will be watching the average hourly wages number very closely.
A higher than expected reading might signal that the Fed has to be more aggressive with policy to put pressure on inflation.
A weaker number could support those who believe a recession in the U.S. is imminent. This would encourage central bank policymakers to ease policy, which would be short-term bullish for stocks.
Daily Swing Chart Technical Analysis
The main trend is up according to the daily swing chart. A trade through the intraday high at 12945.25 will signal a resumption of the uptrend. A move through 12442.50 will change the main trend to down.
The short-term range is 14298.00 to 11491.25. Its retracement zone at 12894.75 to 13226.00 is potential resistance. This is followed by the intermediate retracement zone at 13380.00 to 13825.75.
On the downside, support is a pair of minor 50% levels at 12523.25 and 12218.25.
Daily Swing Chart Technical Forecast
Trader reaction to 12894.75 is likely to determine the direction of the June E-mini NASDAQ-100 Index early Friday.
A sustained move over 12894.75 will indicate the presence of buyers. If this move creates enough upside momentum then look for a surge into 13226.00 to 13380.00. This is the last potential resistance before the main top at 13555.25.
A sustained move under 12894.50 will signal the presence of sellers. If this move generates enough downside momentum then look for the selling to possibly extend into a pivot at 12523.25, followed by a main bottom at 12442.50.
Taking out 12442.50 will change the main trend to down. This could lead to a quick test of another pivot at 12218.25. This is a potential trigger point for an acceleration to the downside.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire