8:30ET Unemployment Rate for Oct 10.20% Current; 9.90% Consensus; 9.80% Previous
Some say the Unemployment Rate is a trailing indicator, however it needs to improve eventually for the economy to grow.
Yesterday's productivity numbers should encourage businesses to go lean and mean, being more productive with fewer workers. The extension of unemployment benefits recently passed may stimulate Christmas shopping for a few. It is more likely the crippling of consumer credit and the jobless will cancel a Christmas rally, and unemployment figures will go well beyond previous estimates of 11%, due to an increased length of unemployment benefits.
The wall of worry is growing.
Many are pointing to SPX 1066 as a pivot point. This morning's unemployment figure re-enforced that. Looking at my own recent ES chart shows a significant amount of potential support in the 1055-1040 range, which could quickly turn into a bull selloff. Today, it is very probably that ES 1059 will be tested for support or resistance. This morning's selloff on the 5 minute chart is a pretty convincing Elliott wave, which typically lead into a short term consolidation triangle pattern.
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