read before 8:30am Friday Dec. 8th

Morning traders.

We’ve got another action packed futures brief for you today.

There’s a solid round of reports/news tomorrow so brace yourselves.

Lucky for you, QuantVue has you covered with how to navigate such a day.

Let’s jump right into it…

Impact Snapshot

  • Jobless claims inch up to 220,000, layoffs still low

Market Evaluation

The S&P 500 rose Thursday, attempting to snap a three-day losing streak with traders looking ahead to Friday’s all-important jobs report.

Despite recent performance, the three major indexes remain poised to finish the fourth quarter and calendar year higher, underscoring the strength of the rally seen earlier.

The number of Americans who applied for unemployment benefits last week was barely changed, indicating that layoffs remain extremely low even as businesses cut back on hiring.

Friday is heavy in economical reports. Keep an eye at 8:30am for Average Hourly Earnings, Non-Farm Employment Change, Unemployment Rate.

Markets Breakdown

The remarks we’ve made yesterday and early today highlighted the importance of paying attention to breakouts or return to balance.

Breakouts without enough volume to follow them don’t exist.

It is not uncommon to see the market edging higher in anticipation of economical reports much like it did yesterday.

The difference is, watching the underlying structure if it’s being supported by that for continuation.

After the market closed on the extremes of the balance area low, early this morning, we’ve commented that the market did not see any continuation of this downside movement in the overnight session and that we will be looking for the market to return back to the fair price/POCS. 

That’s exactly what it happens as the market returned to re-test the other extreme of the balance area yet again. Read today’s report here.

Range-bound activity favors re-test of the extremes of the balance areas.

The market usually awaits a catalysts of some economical report or some news in order to get going in a directional move. We’ve been consolidating in this range for several days now. Big players accumulating their possitions in order to push the market aggresively on it’s next directional move and you woudln’t want to stand in front of it to fade it.

Much like a spring. 

The more you compress it, the more intensive the reaction will be.

ES

The targets we look for until NY close & Targets to pay attention Tomorrow:

  • Upside Levels: 4592/4621/4643/4658

  • Downside Levels: 4541/4531/4522/4506

That’s all we got.

Reply your thoughts on the current market!

We want to hear where you stand. How will you be trading the rest of this month?

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Until Sunday. Cheers!

-The QuantVue Team