Outlook 07/05: Strong job growth is back: Payrolls jump in June well above expectations. U.S. economy added 224,000 jobs in June vs. expectations of 165,000 increase; unemployment rate rises to 3.7%. Federal Reserve policymakers have been watching the jobs numbers closely. Markets have been widely anticipating that the central bank will cut its benchmark interest rate later this month, regardless of what the June payrolls report showed. However, some Fed officials insist they can continue to watch the economic data before acting.
/ESU19 Value: YVAH 2995 YPOC 2985 YVAL 2981 GAP 3001
/ES Plan: Last U.S. session market closed bullish but overnight action looks bearish after strong job numbers, so we've these options:
A) If market remains below LIS 2990 with bearish internals, sell towards ONL 2984 GAP 2979.75 and HVE 2970.
B) If market starts to move above 2990 with bullish internals, buy towards YVAH 2995 ONH 3004 and ATH 3006.
Tips: Watching at the bigger picture, last All Time High shows decent excess on it. Usually, market needs an excess high to call an end to the current bullish auction. Often there will be some action a few ticks above that high but there will be no new buyers to push market higher.
Today's Economic Calendar
11:00 Fed Monetary Policy Report
04:30 PM Money Supply
04:30 PM Fed Balance Sheet
Questions via @verniman direct message (RTH) or email (After Close).
Glossary of terms
