The stock market indices slipped a bit after the Jobs Report miss (98K actual vs 180 expected), but have since recovered with the S&P 500 Index (INDEXSP:.INX) near positive ground. Similarly, treasury bonds rallied hard on this weak data (with the 10 year yield briefly falling under 2.30%)… but bonds have since calmed and yields rallied.
Treasury yields (INDEXCBOE:TNX) will be important to watch on a closing basis, as a loss of key support (2.3%) could hurt the Financials sector.
The US Dollar is gaining strength this morning and that is pushing Gold back lower. More analysis on Gold below.
S&P 500 Futures now have come all the way back to positive after last night’s selloff. One level that I’ve been watching very closely is 2340 – and it held yet again.
For those keeping track this is the 4th day in 5 this week that S&P 500 futures has rallied well up off early lows to the tune of 16 points – Mon. 12 points Tues. 16 points Thur and now 17 points thus far today- (Wed being the reversal from highs) but little overall net change. And more importantly, we’re seeing resilience in equities.
S&P 500 futures price resistance for today still lies at 2361, then 2373-5. While on the downside, the 2336-40 area is key price support.
S&P 500 Hourly Chart
The S&P 500 saw a mild pullback after the NFP jobs release. But it didn’t come near the overnight lows.
Price support for S&P 500 futures remains at 2336-40 and that level will continue to bear importance for traders.
ALSO READ: Equity Markets – Expect Volatility In April
S&P 500 Daily Chart
The market continues to fight off weakness – a sign of ongoing resilience.
10 Year Treasury Yields Chart
After the jobs release, the 10 Year Yield briefly broke down under 2.30%. Any further deterioration would be negative for Finacials. This line of support (2.30) is the true line in the sand for yields right now.
Gold Prices Chart
Gold briefly broke out above 1260 this morning. However, any further strength may rely on continue weakness in treasury yields. The overall move for Gold is solid on a daily basis, but will need to close near highs to strengthen weekly case.
Get more of my ideas and daily trading insights over at Newton Advisor. Thanks for reading and have a nice weekend!
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.