The main focus this week is on jobs. We had a slightly bearish ADP Employment report on Wednesday and now we’re waiting to see what Friday brings with the Nonfarm Payrolls report. This jobs report could be the catalyst that the market has been waiting for…
The S&P 500 (ES) has not dropped lower or rallied higher, but it instead has been sitting in a 4-hour squeeze above the 4-hour Ichimoku Cloud. The market has the capability to break higher as momentum continues to build, but it needs a reason to pop. Could the jobs report cause the market to jump higher? Unless the ES breaks below $4,364, prices will likely continue to chop until the next rally higher. Be careful to not short this market and rather wait to see if we head higher.
Today, we finally saw all three major indices join the rally party, settling up around the same percentage points (slightly over 0.5%). The Nasdaq (NQ) logged an all-time closing high and the Dow Jones (YM) finished the day in the green. The technology sector is still leading the market higher. As long as the NQ holds $15,134 and trades back through today’s all-time high at $15,166, there is plenty of momentum to explode higher and boost the market.
Watch the video above for our Focused List of setups that could continue to squeeze and fire higher. Be patient heading into Friday’s jobs report, manage your risk properly, and we’ll see if jobs can push the market higher.
Stay Focused!