Now that the Fed is behind us, all eyes will be on Friday’s Non-Farm Payroll (NFP) number. As a matter of fact, all eyes have been on the Jobs number for a few weeks, as the S&P 500 futures has traded within a highly compressed range the for three straight weeks. Eventually, a breakout from this range could spark some major movement soon, so watch the outer boundaries very closely – 1695.50 and 1670.
Today is a big day for news, as the market will absorb news from the ADP report, Advance GDP, Chicago PMI, and the Fed. Clearly, how the market perceives this news will affect price movement heading into Friday’s Non-Farm Payroll number, which will likely kick off the next major move in the market.
While we knew the markets would likely trade quietly heading into a busy week of economic and Fed news, Monday’s trading was rather dismal outside of a few fifteen minute spurts. Tuesday’s action is expected to be much the same. Since the market is not likely to break out ahead of key news this week, look to play reversals at key zone with clear profit objectives in mind.
After Friday’s bullish end to the week, it’s clear the market remains quite healthy. However, we have the FOMC statement, the Fed Funds Rate, and the Non-Farm Payroll number that will anchor a week that will be heavy with economic news, which could greatly influence price in the days and weeks ahead.
We’re seeing weakness across the board during pre-market trading this morning, especially after the bulls were unable to convert the 1686 level in E-Mini S&P 500 futures, and the 3060 level in the E-Mini NASDAQ 100 futures. Rejections at these levels have sent the market lower this morning, but there are key support zones down below that the bears are gunning for, which the bears have defended during the recent advance.
