Hotter than expected job data will put pressure on the market

U.S non-farm employment shows an increase of 517k vs. 193k expectations and unemployment come out at 3.4% vs. 3.6% expectations. The strong results put pressure to the stock market before the market opens. Traders and investors weighing more possibilities that the Fed will stick with its rate-hike agenda and bring more downside to the market. Traders will observe the current situation while awaiting the next inflation data. If the inflation number moves lower steeply then we might see a different response from the market.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index might move lower today as the market reacted bearishly toward the hotter-than-expected job data. The index is currently trading near the top trendline and might bounce down to target the 32,500 – 33,250 area. Traders will wait near the area and the daily SMA 200 for bullish reactions. When there are bullish reactions, traders could enter long positions in stocks.

Target Corp (TGT)

TGT share prices look to climb above the daily SMA 200 and manage to print a new higher high. The share prices are expected to continue higher and attempt to close last year’s earnings gap. If the share prices corrected lower toward the daily SMA 200 then traders could use the moment as a chance to enter long positions.