All eyes on tomorrow’s job’s report
Wednesday rally mode set in early in the day and continued all day.
Just when you expected a quiet day we put in a huge expansion rally day on higher volume for another accumulation day on the NYSE and Nasdaq. We needed semi’s and tech to step up and they did today. Very strong performance across the board today leading the way with Nasdaq. Dow broke the prior record and closed in triple digit gains.
Crude closed up 73 cents on the day at $59.41. Which was a huge come back after dropping down to $57.70 early in the day. OIH fell into $119.21 and bounced off, I highlighted that support last night. Nice hammer on the day so we’ll look for the high to break 122.76 and to continue higher to confirm that reversal candle. Gold also fell $14.80 to close at $566.70. Yikes and people still are saying 800’s by year end. I say that rally better come soon. GLD which tracks gold futures, but trades like a stock (it is an ETF, but usually ETF’s are a basket of stocks that represent the index, the GLD trades off gold futures) is at Junes lows, we could see some support here 55.00 and that is also 61.8% fib support. A break here would lead us down to 53.21 so look out below if we don’t find some upside here. Resistance is 57.35 and onto 58.46.
Thursday is another light day on the economic front. Friday’s job’s data will be the biggie and the market will listen to that. Given that and the rise we saw today I am looking for a slow day Thursday and for the market to pause. We are very extended and right under resistance as you can see on the charts below. So a pause into Thursday gives the market time to wait for Friday’s data.
ES (S&P 500 e-mini) closed the day up on Tuesday. Weekly data: H= 1350.50, L=1321.50 and C=1345.50. Weekly pivot and support resistance data: PP=1339.25, R1 1356.75, R2=1368.25 R3=1397.25 and S1=1327.75, S2=1310.25, S3=1281.25. Pivot for Thursday is 1352.50. Support 1354.25, 1352.50, 1350.50, 1347.50. Resistance 1359.25, 1360.75, and 1365.75. Futures should look for a quiet day and narrow range. An early pullback and some positioning late day ahead of Friday’s jobs data will be the finale and sitting where we left off today is perfect to pause then see what the data has to offer the market.
Week of October 2 — October 6
Thursday 08:30 Initial Claims, Friday 08:30 Average Workweek, 08:30 Hourly Earnings, 08:30 Nonfarm Payrolls, 08:30 Unemployment Rate, 15:00 Consumer Credit.
Good Trading to everyone.
Teresa Appleton has traded equities and options for
nine years and futures for seven. She founder and CEO of TradeLogic, LLC. For
more information about Teresa and the training she offers stock, options and
futures traders,
click here.