Stock Markets Eagerly Await Jobs Number

S&P 500 Technical Analysis

As we anticipate the jobs report, the S&P 500 has fluctuated throughout the trading session on Thursday. Having said that, the market is a little overbought at this moment, so I wouldn't be surprised if we saw a downturn. 

The 4500 level, of course, would be a focus for many traders, since it is a large, round, psychologically significant figure, as well as the place where the 50 Day EMA is racing towards.

The 200 Day EMA is slightly below the 4400 level, so it could provide some support as well.

Remember that because the US indices are market cap-weighted, they are not designed to fall for long periods of time, thus you must exercise extreme caution when attempting to short the market. On Friday, the employment report will cause a lot of volatility in the market, so you should be wary about taking any large positions.

When I look at this chart, I can't see anything other than a bit of an overstretched state, so a pullback could provide some value, which the market urgently needs right now. The market will continue to be extremely volatile, but I believe that we will finally move higher due to Wall Street's assumption that the Federal Reserve would bail them out. Whether or not that is the case is debatable, but it appears that Wall Street believes we will continue to rise in the long run.