Stock futures under bearish pressure after strong job data
The stock market reacted bearishly toward the strong job data release today. Non-farm Employment shows a massive increase of 528k jobs compared to 250k expectations. Meanwhile, the unemployment rate trending down to 3.5% compared to the 3.6% expectation. Strong job data means the Fed will keep track on the path of more rate hikes or translate into more rate-hike.
DJIA futures currently lower 137 points and might add more loss. Next week, traders will observe inflation data. Another increase in inflation numbers will dampen bullish sentiment.
Dow Jones Industrial Average (INDU)
DJIA might show a reaction today inside the resistance area. If the index closes below the area with strong bearish momentum then traders will expect a bearish continuation in the coming week. On the other hand, a close above the area will prompt further bullish movement toward the daily SMA 200.
United Parcel Service Inc (UPS)
UPS share prices undergo a bullish correction and got near the daily SMA 200. Near the averages, there are confluences of levels that might become strong resistance levels to watch. If the share prices get rejected with strong reactions then traders could enter short positions. On the upside, if a bullish breakout happens then traders will wait for a bearish retracement to enter long positions near the breakout level.