Volatility expected as US Jobs data looms
Hey team.
We’re anticipating another emotional session tomorrow as the US Jobs will likely trigger volatility at the time of the release going into the US session.
Let’s re-cap today’s markets and see what’s next!
Impact Snapshot Tomorrow
Average Hourly Earnings - 8:30am
Non-Farm Employment Change - 8:30am
Unemployment Rate - 8:30am
Market Evaluation
Equities stalled near all-time highs as traders refrained from big bets ahead of the US jobs data reading that will help shape the outlook for the Federal Reserve’s next steps.
Investors are on the hunt for signs of a weakening labor market, which could support rate cuts from the Federal Reserve.
A slowdown in the job market, and even a rise in unemployment, could be beneficial if it helps to ease some of the upward pressure on inflation.
Jobless claims topped estimates, labor costs increased by less than previously reported and the trade deficit widened.
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Markets Breakdown
If you’re a reader of our newsletter for some time, you’ve heard us say how the market likes to form a range/balance in anticipation to key economical reports.
Today was no exception. Market managed to print an ATH excess above but with no momentum follow up to sustain upside activity which lead to a rotation on the lower side of the upper distribution left on Wednesday.
As we’ve stated on our market plan today, containing activity in the upper distribution, further establish acceptance of higher prices.
Heading into tomorrow, exercise caution at 8:30am as the jobs report will send the market into an emotional volatile round and look where the market will start building value right after.
Many times, such reports will have a swing in one direction that will be met with another swing in the opposite direction.
ES
Some targets we’ll be looking heading into tomorrows session
Upside Levels: 5393/5405/5417
Downside Levels: 5339/5328/5315
That’s all we got!
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