How Will U.S. Non-Farm Payrolls Affect Friday’s Stock Market?
Higher-than-expected weekly unemployment claims was the main headline for Thursday, which ended as the lowest volume trading day of the year. We had a gap-down this morning that slightly intensified. Soon thereafter, the bulls pulled out a nice bounce that slowly worked its way higher into the close. We continue to show support around the 200-day moving average of 1115 in the S&P 500. If we were to break that, we should expect selling pressure towards the bottom of the recent trading range and the 20-day moving average around 1100. To the upside, we continue to fizzle when we touch the 100-day moving average and June’s highs of 1131. If we were to break above 1131, we would be considered an uptrending market once again. At this point in time, we are still trying to break out of our downtrending market so we cannot ignore that. With monthly job reports tomorrow, it was hard to be a buyer today. This was likely a reason for such low volume. Since we are predicting bad job reports tomorro
