So we gapped down yesterday if you didn't notice. I guess the market didn't like what Powell had to say. But overall, yesterday had a even amount of buyers and sellers. What we're waiting for is the Octobers payroll number that's due to come out an hour before market open. Now, expected is 205k. If this number comes in higher than 205k, the market really isn't going to like that and we'll head lower. If it comes in lower, then.... that could give the market a reason to rally higher. But does it make sense to go higher today after yesterday and Wednesday's action? I think the markets are most likely heading lower. The key to this market is Bond yields and the US Dollar. If they go up, market is going to sell off. They come down, market rallies. It's what's been driving this market.
I'm more concerned about the Nasdaq.
Yesterday, big cap tech was just getting a beating. And if the selling continues with these big dogs, we will go lower. The markets are going to want to test those lows again and fast. This is where I'd want to see 40,50,60 on the VIX if the selling accelerates.
Futures are currently trading at 3758 at the time of writing. So as of now, it looks like we're gaping up. However, the payroll numbers come out an hour before and if the markets don't like the number, we could turn around in futures right before open and head lower. We'll see what happens.
Plan for the Day: There's a small chance of a rally that could happen today. If we do, I'll just sit on my hands and watch the market. I'm still holding some shorts with plenty of time. I just need to know if I should add to my shorts. If we gap lower, then I'll add to my short positions and follow my levels down. Keep in mind that markets usually don't bottom on Fridays. Be patient, stay disciplined and trade the market in front of you. Happy Trading!
I'm more concerned about the Nasdaq.
Futures are currently trading at 3758 at the time of writing. So as of now, it looks like we're gaping up. However, the payroll numbers come out an hour before and if the markets don't like the number, we could turn around in futures right before open and head lower. We'll see what happens.
Plan for the Day: There's a small chance of a rally that could happen today. If we do, I'll just sit on my hands and watch the market. I'm still holding some shorts with plenty of time. I just need to know if I should add to my shorts. If we gap lower, then I'll add to my short positions and follow my levels down. Keep in mind that markets usually don't bottom on Fridays. Be patient, stay disciplined and trade the market in front of you. Happy Trading!
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Futures trying to digest these reports. Payrolls increase 261,000. EST. was actually 193,000.
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3720ish is the area that's getting weaker. So if we lose that, then we'll head lower. If this market really wants to rally, we can push to 3815ish. Let's see what happens in the first hour.
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Up or down. Trying to decide in this area.
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If we push out of here, I can see 3820ish
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If we go to 3820ish that would touch the 50. So can we sell off towards the end of day? If we do, then next week will be more bearish.