Jobs Report

Outlook 01/08: U.S. stock futures remain steady after Job creation came to a halt in December as restrictions brought on by surging Covid-19 cases hammered virus-sensitive industries, particularly bars and restaurants, which lost nearly half a million positions for the month. The Labor Department reported that payrolls fell by 140,000 below 50,000 expected. The unemployment rate was 6.7%, compared to the 6.8% estimate. Markets, however, shrugged off the report, likely on the anticipation that it strengthened the case for more stimulus from Congress and reflected a likely temporary reduction in jobs that would be reversed as Covid vaccine distribution accelerated. 

/ESH21 Value: YVAH 3804 YPOC 3794 YVAL 3781 GAP 3797.25

/ES Plan: Yesterday market closed bullish (PBT 3846), and overnight continues on that way (PBT 3825), moving above previous value, so these are the initial balance options for today:

A) If market remains above LIS YVAH 3804 with bullish internals, buy towards ONH 3817.75 PBT 3825 and PBT 3846.

B) If market moves below LIS YVAH 3804 with bearish internals, sell towards GAP 3797.25 ONL 3792.75 and YVAL 3781.

Note: Market opens above previous value area and if it remains above value, it is a clearly bullish signal. But, if market begins to trade within value with volume increasing, 'value area rule' comes into play. Remember that new record high has been printed overnight, so it's still pending to be revisited at regular trading hours.

Market Movers

10:00 Wholesale Inventories

11:00 Fed's Clarida Speech

1:00 PM Baker-Hughes Rig Count

3:00 PM Consumer Credit

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