Strong U.S job data trigger sell-off in the market

The sentiment of the U.S stock market turns bearish after the release of job data. The unemployment rate fall from 3.7% to 3.5% and non-farm employment recorded an increase of 263k vs. 248k increase expectation. We reiterate our stance yesterday where we think a better number will give the Fed more room to postpone rate-increase. A stronger number means the economy performs better and there are more reasons for the Fed to hit the brake to cool it.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index bullish correction has not reached the 30,500 – 31,250 area yet but the index pushed lower yesterday. If the index gain more bearish momentum in today’s trading session then we might get confirmation on the bearish continuation. On the other hand, if the index could close above 31,250 then there is a chance of a bullish reversal.

Deere & Co (DE)

DE share prices are trading near the daily SMA 200 and attempting to print a close above it. We could see the share prices are trading between two trendlines which means the overall trend is sideway. Traders will observe the share prices movement inside the triangle range and wait for a close outside of the range to confirm the next direction.