Pre-market Tour (recording & summary)
A pessimistic dip down to 2164.25 greeted this morning’s Employment Situation report. Its reaction spiked up to the 2174.25 area, and has since eked higher to touch 2176.00. The bias-up target is another point higher.
That’s a traditional reaction to report’s “disappointment,” which seems to take off the pressure from the Fed raising rates. But a traditional knee-jerk reaction was always expected. It’s the follow-through that matters. And exceeding the 2177.00 bias-up target at 10:15 — i.e. renewing the bias-up signal next targeting 2181.25 — would signal that buyers are following-through.
Otherwise, not renewing the bias-up would likely range flat-to-lower this morning. And that’s only if bias-up is triggered. This being Friday, a few disappointed buyers can become hordes of aggressive sellers within minutes. Not triggering bias-up at 10:15 could be very bearish.
Details and other markets coverage are discussed in the pre-market Tour recording here.