E-Mini S&P 500
U.S. equities fell on Friday to cap their third straight weekly decline, after a solid August jobs report failed to ease fears that the Federal Reserve would keep aggressively hiking interest rates to fight inflation.
The S&P 500 fell roughly 1.1% to 3,924.26, its lowest close since July.
Stocks had been weighed down throughout this week by hawkish comments from Federal Reserve officials signaling that interest rate hikes aren’t going away anytime soon. That’s put traders on watch for a retest of the June lows, especially knowing September is historically a poor month for the market. Some have suggested that if the S&P 500 fails to hold the 3,900 level, those summer lows could come back into play.
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Plan A : Short if market failed to support above 3938. Targets are 3921 and 3910.
Plan B : Long if market supported above 3938. Targets are 3946 and 3959.
E-Mini Nasdaq
After rallying through the morning, the Dow Jones Industrial Average erased a 370-point gain and finished the session lower by 337.98 points, or about 1.1%, at 31,318.44.
The Nasdaq Composite declined 1.3% to 11,630.86, recording its first six-day losing streak since 2019.
Some investors were briefly comforted on Friday by the highly anticipated jobs report, which showed the economy added 315,000 jobs for the month, just under the Dow Jones estimate for 318,000. Stocks rallied in the first part of the day.
The unemployment rate rose to 3.7%, two-tenths of a percentage point higher than expectations. The August report is particularly important because it’s one of the last major economic reports the Fed will weigh before it raises rates at its September meeting. This data point could help the central bank determine whether a 75-basis-point hike.
The last major economic report of note is August CPI on Sept. 13 and is more likely to determine how aggressive the Fed needs to be in the near term.
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Plan A : Short if market failed to support above 12117. Targets are 12082 and 12053.
Plan B : Long if market supported firm above 12117. Targets are 12148 and 12480.