New U.S. Weekly Jobless Claims declined last week according to the government, but were still too high to have a strong impact on the week labor market.
The number was good enough to push Treasury yields slightly higher, driving down December Treasury Bonds. This market has been trading in a tight range for six days indicating impending volatility. On the downside, 130’17 to 129’11 remains a potential downside target. The top at 135’19 seems to be closely guarded at this time.
Equity indices are rising on the jobless claims news. It seems investors like the number. Stocks are likely to remain firm as long as downside pressure remains on the debt market.
The strong close in the September E-mini S&P 500 has put this market in a position to rally further with a cluster of Gann angles and a .618 retracement level the next potential upside target.
On Thursday the cluster will be formed at 1086.75 to 1088.00, an uptrending Gann angle/retracement level combination. The downtrending angle will fall between these two levels at 1087.75. This could be indicating that this market has more room to run to the upside tomorrow.
The September E-mini S&P 500 soared to the upside Wednesday morning boosted by strong economic data from Australia and China. Although the ADP employment outlook surprising missed analyst estimates, investors shrugged off the news. Thin trading conditions may have contributed to the rally. Many large traders and institutions have been on the sidelines this week due to Monday’s Labor Day holiday. In addition, other key market players have chosen to stand aside in front of Friday’s August U.S. Non-Farm
