Employment Non-Event
The Employment Report release was quickly turning into a non-event this morning. The report came out a little stronger in most areas than anticipated. The market had a light sell-off initially, and has since rebounced. Very light volume as this is turning into a non-event.
S&P futures were trading up 540 at 1440.40. We have a key zone between 1438.50 and 1442. Above 1442, we’re looking for 1454. Along the way, 1448 to 1450 is resistance.
Above 1454, the market should look for an eventual run to our 1468 target, which is the 61.8% retracement of the down move from September 1 to the October lows. We would be surprised if this target were met during today’s session.
On the downside, below 1438.50, look for a move to 1431. We have support between 1433.50 and 1430. If we fail here, there is a good chance we can trade to 1422.50. Along the way, we have support between 1425 and 1421.50. Anything below 1419 is a decisive negative and should lead to a trade down toward 1408. The Morning Pivot is 1437 to 1435.50.
The NASDAQ is trading up 42 handles at 3359 on the strength of QUALCOMM’s
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PowerRating) earnings and
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PowerRating) bouncing off the rumors from yesterday. We see resistance between 3374 to 3380. If we get above this, look for a move to 3420; 3415-3425 is resistance. Above this zone, the market has an excellent chance to move to 3500, with resistance between 3445 and 3460.
On the support side, we see 3335 and 3325. Under that we have 3305 to 3290. If we trade below this, look for a move to 3240, with light support between 3260 and 3255. In general, a very tight range yesterday on an upside gap open. This type of action bodes well for building a base and moving higher for the next couple of weeks.
The market needs to continue this. Beware that in today’s trade we may start to see some influence from Tuesday’s election. We are expecting another range-bound session with a small upward bias.
Dow continues to catch its breath after the upmove. We expect this pattern to continue.