U.S stock mostly flat after job data

Job data come out lower than expected. The non-farm employment numbers come out at 142k vs. 160k expectation. It is a major bullish confirmation for the stock market as no more reason for the Fed to delay the interest-rate cut. The question is whether the Fed will cut 25 bps or 50 bps this time. A deeper rate cut might send the market further upside but traders might want to stay cautious until the announcement.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index traded lower yesterday in preparation for the U.S. job data release. It seems the market will open higher today and stick near the swing high as job data show weaker-than-expected results. However, if the stock market decides to continue the bearish correction, traders can add more long positions at a lower level. As mentioned, 40,000 is the major support level to watch if the index continues the bearish correction.

Arm Holdings Plc (ARM)

ARM share prices bounced upward from the daily SMA 200 but were rejected from the daily SMA 100. The share prices look to consolidate between the daily SMA 100 & 200 also the trendline. Traders will use the trendline and daily SMA 200 as places to enter long positions when there is bullish reactions. However, if a bearish breakout is below the trendline and a new lower swing low is printed then it is time to switch to the bearish scenario.