With roller coaster monthly U.S. payroll gains ranging from 11,000 to 287,000 in the previous two months, traders will be looking to the July jobs numbers to provide some context for what appears to be a hiring slowdown in 2016. The Labor Department is set to release the closely watched figure at 8:30 ET. Besides non-farm payrolls, investors will be eyeing the unemployment rate, wage growth and another report that will display the U.S. trade deficit for June.
Any chance the Federal Reserve had of raising rates this year may have been quashed by the Bank of England, which not only cut interest rates on Thursday, but restarted its money-printing program. The decision makes the corner in which the Fed has found itself even more claustrophobic, and will likely make it harder to tighten monetary policy as one of its closest peers loosens its purse strings.
In Asia, Japan flat at 16254. Hong Kong +1.4% to 22146. China -0.2% to 2977. India +1.3% to 28078.
In Europe, at midday, London +0.4%. Paris +0.6%. Frankfurt +0.3%.
Futures at 6:20, Dow +0.2%. S&P +0.3%. Nasdaq +0.2%. Crude -0.9% to $41.56. Gold flat at $1367.90.
Ten-year Treasury Yield flat at 1.5%
(Source: Seeking Alpha)
Bulls have regained control by notching a Positive 3 Day Cycle. Price held bid in prior session and continued to slowly grind higher into overnight session where price has reached 2165 handle objective.
Today is Cycle Day 1 (CD1)…Norm is for some type of decline…Employment Report due out at 8:30 ET may have some influence on direction. Key Support Marker is now 2156 handle. Upside price target measures 2171 – 2173 zone.
Range Projections and Key Levels: Sept (U) Contract
**Note: The odds highlighted are NOT predictions or trade recommendations, rather a guide based upon historical observed occurrences.
Today’s Hypotheses: September (U) Contract
*****The levels outlined below are more general framework within a larger range…They are to be used are reference prices from which to consider trade opportunities, not hard trade levels.
Scenario 1: IF price can hold bid above PH (2164.25), THEN upside is open to 2172 handle.
Scenario 2: Failure to hold bid above PH (2164.25) and conversion of 2158 to resistance places new pressure on bulls and potentially tips balance scale slightly to bear camp. Conversion of 2153 – 56 zone to resistance reinforces the bear case.
Trade Strategy: Our tactical trade strategy will simply remain unaltered…We’ll be flexible to trade both long and short side from Decision Pivot Levels. Continue to focus on Bull/Bear Stackers and Premium/Discounts. As always, remaining in alignment with dominant intra-day force increases probabilities of producing winning trades.
Stay Focused…Non-Biased…Disciplined ALWAYS USE STOPS!
“Knowing is not enough, We must APPLY. Willing is not enough, We must DO.” –Bruce Lee
*****This trade strategy report is disseminated for “education only” and should not be viewed in any way as a recommendation to buy or sell futures products.”
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