Stocks Look Strong from Positive Data and Less Political TurmoilPosted 06/01/2018 8:41AM CT |
Stocks are looking for a positive day after Non-Farm Payrolls exceeding expectations with a gain of 288K vs street estimate of 185K. In addition, wages came in as expected at 2.7% which is a key indicator that the Fed looks at to get a gauge on inflation. Currently, the S&P is up $16 at 2722 and the Nasdaq up 35 at 7011.00. What I found quite interesting this morning is the POTUS tweeted this morning at around 6:30 central, that he was looking forward to today’s job number which came out about 1hr after his tweet. Point here is that now investors are saying obviously he knew the number prior to the release and if that’s the case, why would he tweet giving traders indication the number was good. In addition to the positive employment number stocks are finding relief that the political turmoil that has spooked markets all week has calmed as the country looks as if it has come to a consensus on forming a coalition government. Let’s focus on technicals for the June E-mini S&P. Traders should focus on the current 100-day moving average which comes in 2712. We are above that right now, currently sitting at 2726. So intra-day, the market looks positive and traders should have the “buy the break” mentality with 2712 providing stiff support. Outside markets are positive with yields up across the board and weakness in the Japanese Yen which is showing a risk on trading environment. In addition to the earlier data, we have ISM Manufacturing at 9:00 central.
E-min S&P 500 Jun ’18 Daily Chart