US stocks forecast: Bulls in the driving seat ahead of key Nonfarm Payrolls

  • The Dow Jones Industrial Average added  0.23%.
  • The S&P 500 put on 0.16% and the Nasdaq Composite advanced 0.07%.

US stocks were firm on the day before the critical Nonfarm Payrolls event on Friday on the back of positive news in the Jobless Claims data.

The data has proven the labour market remains in good stead despite the rising COVID-19 infections. 

However, investors are still expecting a sub-par outcome in tomorrow's NFP data which probably means that the Fed will not be in a hurry to taper the quantitative easing programme. 

Consequently, the S&P 500 and Nasdaq also set new intraday highs. 

The Dow Jones Industrial Average added  0.23%, the S&P 500 put on 0.16% and the Nasdaq Composite advanced 0.07%.

Widerspread, the MSCI's world stock index that measures equity performance in 50 countries, added 0.19% after paring earlier gains and was still on track to post its fifth consecutive closing high.

Friday's much anticipated August employment report has expectations for a call for 750k headline job growth, an Unemployment Rate of 5.2%.

Dow daily chart

The bulls are in anticipation of a 21-50 day EMA bullish crossover:

The index hs painted a bullish dandle stick at the close with the confluence of trendline support not far behind at the 61.8% Fibonacci level.

A 21-EMA crossover up through the 50 EMA could be regarded as a highly bullish development for the day's and weeks ahead. 

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