SPX futures are flat, trying to digest a big letdown in the BLS October Employment Situation Report. To make matters worse, 216,000 of the 261,000 reported new jobs are from a hypothetical model called the CES Birth/Death Model.

ZeroHedge reports, “Well, with virtually everyone expecting a 300K+ payrolls number after last month's negative hurricane-distorted print, and with whispers of a 400K print floating around, it only made sense that not only would payrolls disappoint, printing at 261K, one standard deviation below the 310K consensus estimate (and that even with a whopping 89,000 waiters and bartenders added)”

The reaction at the open will bear close scrutiny.

NDX futures are challenging Cycle Top resistance at 6258.83 and are threatening to make a new high.

The DJIA is likely in the same position, expecially after making a new high yesterday. However, there is a technical resistance at 23541.00 that may put a stop to the rally.

VIX futures made a new low this morning and I have recorded it on the chart. They have recovered somewhat and may open flat. It remains to be seen what the final numbers are for the day if the VIX does not revisit the morning lows.

TNX remains beneath the Broadening Wedge trendline. It would be possible to see a muted retracement, but that will remain a question until the trading day develops.

The USD futures are modestly lower than the close, but after an overnight ramp that took it to 94.75. It remains beneath the trendline and appears poised to decline in the near term. USD peaked in strength last Friday and appears that it may decline into the end of next week, in the near term.

The nYSE Hi-Lo Index closed beneath its mid-Cycle resistance at 101.42 yesterday. The close was a close call, so we will be monitoring the Hi-Lo during the day today. The key will be a decline beneath the trendline near 25.00.

Regards,

Tony

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