On Friday we got the April jobs report which came in better than expected as the U.S. added 115,000 jobs vs the estimate of about 60,000 while the unemployment rate remained unchanged at 4.3%. Futures jumped higher on this report as hopes of rate cuts increased due to the stronger labor market. Tech was the standout leader again as semiconductors continued their historic rally. The SOXX and SMH (semiconductor ETFs) jumped 5.67% and 4.9%, respectively, which led the Nasdaq to a higher close of 1.71%. The S&P added another 0.84% while the Russell added 0.76%. The VIX on the other hand was relatively strong as it also closed higher by 0.64%. The last few days volatility has not gotten crushed despite the continued rally in the markets. For the week, the VIX finished higher by 1.2%.
The Nasdaq had another failed breakdown on the daily on Friday which starts another uptrend for it going into tomorrow's session. As I've noted in previous updates, it will have to continue to gap up in order to open above all of these new uptrends that it keeps starting. For tomorrow, the same applies as the first level to watch will be from its prior uptrend (purple) at about 26,350 which is about 0.4% away from Friday's close of 26,247. Its next uptrend (yellow) will be at 26,300 which is also above Friday's close. It will need to gap above both of these in order for them to be support. The next two levels to watch will be at 26,215 (blue) and its new primary uptrend (white) at about 26,185. Price is currently above both of these levels so they'll act as support as long as it doesn't gap below them.
If the Nasdaq can gap up again tomorrow over the resistance levels mentioned above, then its next upside resistance on a rally would be from its primary uptrend (white) at about 26,500. If it can break through this, then the last resistance likely to be in play for tomorrow would be from its next uptrend (blue) at about 26,600.
The S&P didn't break through any of its trends from Thursday's update, so it doesn't start any new trends going into tomorrow. For now its primary uptrend (white) is still the only resistance level to watch until it breaks through it. That uptrend will be resistance at 7,440-7,445 tomorrow.
On a pullback, the first support to watch will be at 7,335-7,340 from it prior uptrend (yellow) and then its primary uptrend (white) comes back into play from the bottom of its range at about 7,295. If that doesn't hold, in the event of a larger sell-off, the last support likely to be in play for tomorrow would be its yellow uptrend again (bottom of the range) at about 7,230.
The Russell 2000 opened below its primary uptrend support on Friday but it did rally back to close above it. This gives it a failed breakdown on the daily which starts a new uptrend for it. But, there is risk of it breaking down a bit here. The first resistance to watch for tomorrow will be at about 2,868 from the retest of Friday's failed breakdown (blue). It closed at 2,861 on Friday, so it needs to gap up in order to hold this retest as support. Otherwise, it will act as resistance on a rally attempt. The next resistance will be at 2,876 (yellow) which it will also need to gap above in order to act as support. If it can gap or break above them, its last resistance likely to be in play will be from its primary uptrend (white) at 2,920-2,925.
On a pullback, the only support likely to be in play for tomorrow will be from its primary uptrend (white) at about 2,855. This is only 0.2% away from Friday's close of 2,861. So there is risk of a gap down below this support as well in which case it would be resistance on a rally attempt.
