Monthly Non-Farm Payroll Report is released to at 8:30 ET with consensus 213K…Prior 288K…Consensus Range: 110K – 240K. Unemployment Rate: 6.4% v 6.3%. Nonfarm payroll employment increased 288,000 in April after a 203,000 gain in March and a 222,000 increase in February. The net revision for the prior two months was up 36,000. The unemployment rate fell sharply to 6.3 percent from 6.7 percent in March. The labor force fell a whopping 806,000 in April. The U-6 underemployment rate declined to 12.3 percent from 12.7 percent in March. Average weekly hours held steady at 34.5 hours. Average hourly earnings for all workers were unchanged after nudging up 0.1 percent in March. The labor market is improving but a weather-related rebound may have come into play.
S&P e-mini surpassed yesterday’s price target of 1935.50 and traded within the upper extreme STATX Zone between 1938 – 40 following the ECB Rate announcement. All market participants seemed relieved and positively content with decision..but will it work to fend off deflationary pressures that the EU is experiencing? Only time will tell….
Overnight trade has price marginally higher with high tick reading of 1942 ahead of monthly Employment Report cited above. Job trends have been trending higher with expectations in-line with the underlying data, so unless there is a surprise, it’s business as usual with trading.
Having broken out and converted the 1922- 23 zone cited in previous DTS, price is now at new contract highs…Key will be for continued buying enthusiasm on pullbacks, or will profit-taking develop, since price has not had a meaningful (healthy) price correction in quite some time.
Initial support is marked at 1936 – 37 zone (lower edge of prior day’s upper consolidation)…It is necessary that this zone hold for continued bullish case. Failure to hold on pullback suggests potential profit-taking which could push price lower to attract new responsive buying. Potential lower support would be anticipated between 1930 – 33 zone, then the Three-Day Central Pivot Zone 1924- 27…down into STATX Zone 1921.25 – 23.75. IF price can sustain a strong bid, THEN further upside measures 1943.50 – 45.75 STATX Zone, followed by 1947 – 49 zone.
Trade Strategy today will be neutral bias as we anticipate continued consolidation of recent gains, which could setup trade opportunities on both sides..Long and Short. So, FLEXIBILITY in our trade selection will be paramount.
I can recover from any setback. I have an attitude of abundance. I affirm abundance in the universe. I know I cannot begin to count the stars. I realize the ocean doesn’t care whether I go to it with a bucket or a teaspoon. I know the market provides a river of opportunities. I invest in my capabilities. I will be happy with my results.