how to trade unemployment tomorrow

What’s up traders.

Your favorite QuantVue analysts back again with another market brief.

Big employment news coming tomorrow so let’s now waste any time. Let’s jump into it.

Impact Snapshot

  • U.S. jobless claims increase slightly to 207,000 for the week

  • Non-Farm Employment - Friday 8:30 am ET

  • Unemployment Rate - Friday 8:30 am ET

Market Evaluation

The U.S. labor market held strong as September came to a close, with weekly jobless claims holding around recent lows.

Global stocks closed higher Thursday after U.S. Treasury yields pulled back following weaker-than-expected jobs data.

US stocks edged lower after the latest data showed weekly unemployment claims holding near historical lows and tried to recover some ground later in the session.

Traders have been searching for data signaling the labor market is cooling enough for the Federal Reserve to forestall another interest rate increase next month.

As we’ve said, the slightest movement on Yields and dollar will affect the futures market so always keep an eye on those.

The most important thing to know going forward is Friday’s payrolls data, and next week’s inflation number will decide whether the 10-year Treasury yield goes up to 5% or down to 4.5%.

Markets Breakdown

Market remained within a short term balance for the last 3 days as price is trying to find acceptance in the range bellow.

Tomorrow’s session has catalysts that can offer a trending directional session to break out of balance and seek the next range to consolidate.

Since our Sunday newsletter we’ve highlighted that the market was not looking to spend much time in these areas and it would need to find acceptance inside the either of the two important ranges.

Bulls have a lot of re-claiming to do in order to reach the higher long-term balance area while Bears welcome a rotation to the other side of the range. 

ES

The targets we look for until Friday’s close:

  • Upside Levels: 4325/4356

  • Downside Levels: 4220/4180

That’s all we got for you in this market report.

We hope you have a great rest of your week!

We’ll see you Sunday.

-QuantVue Team