Jobs Report

Outlook 05/03: U.S. stock futures jump sharply Friday after a softer-than-expected April jobs report boosted hopes that the Federal Reserve could start cutting interest rates soon. Friday’s nonfarm payrolls report showed 175,000 jobs gained in April, below the 240,000 jobs expected. The unemployment rate edged up to 3.9%, versus 3.8% in the prior month. Wage figures were also less than expected in encouraging sign for inflation. Following Wednesday’s Federal Reserve’s meeting on Wednesday, Chair Jerome Powell said the central bank was prepared to act if unemployment rate ticked higher. We’re also prepared to respond to an unexpected weakening in the labor market, Powell said.

/ESM24 (JUN 2024): YVAH 5087 YPOC 5065 YVAL 5055 GAP 5091.75

/ES Plan: Yesterday market closed bullish, and overnight, after jobs report, moves above previous value/range, so these're the opening and initial balance options for today:

A) If market moves above HVE 5155 with bullish internals, buy towards PBT 5165 HVEs 5196-5215 and GAP 4243.

B) If market moves below HVE 5155 with bearish internals, sell towards YHOD 5113 GAP 5092 and YVAH 5087.

Note: FOMC day always offer an overreaction, Yesterday is the real reaction to FOMC news, and Today is when we have confirmation of the next trend. Market opens above value and it begins to trade within value, Value Area Rule (VAR) comes into play. It's Friday and traders who have made losses that week will likely take large risks to try and end the week with a profit. Try to be calm and focus on the market rather than thinking about your account.

Market Movers

9:45 PMI Composite Final

10:00 ISM Service Index

1:00 PM Baker Hughes Rig Count

7:45 PM Fed's Williams and Goolsbee

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