Labor Market Remains Strong, Stocks Dip.

As the hope for a Fed Pivot continues to fade.

Technical Edge — 

• NYSE Breadth: 28% Upside Volume

• Advance/Decline: 29% Advance

• VIX: ~$30.40

Game Plan: S&P, Bonds

The action has been choppy over the last few days. Thursday was clearly a theta-burn day as the markets toiled around with an inside day ahead of the jobs report. 

Speaking specifically on the S&P, it did enough to stay above key support, but didn’t do anything to encourage the bulls, IMO. In other words, it’s setting up for today. 

I don’t want to talk too much, as the jobs report could make or break any setup. I will map the S&P as usual and send an update as needed. 

A strong jobs number doesn’t bode well for stocks, but if the market can generate bullish price action off a strong headline number, maybe the rally can continue. 

Let’s end the week on a great note. Cheers!

S&P 500 — ES 

Keeping things simple: ES is holding the 10-day and last week’s high at 3751 (albeit, barely). If it pushes higher on the report, 3800 is in play, but mostly, all eyes will be on 3820. 

That’s the two-day high and where the 21-day moving average comes into play. Above that puts 3850 on the table. 

On the downside, a break of 3740 and failure to regain it could put 3726 in play, then 3700 or lower. 

SPY