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• US stock futures stabilize as markets await the September jobs report.
• Analysts anticipate fewer job additions compared to August.
• A weaker-than-expected report may drive bond yields lower, supporting equities.
• On Thursday, Dow, S&P 500, and Nasdaq experienced minor declines.
• Initial jobless claims remained low, indicating a resilient labor market.
• The dollar index hovers around 106.4 in anticipation of the jobs report.
• A soft jobs report could lead to lower dollar and bond yields.
• Greenback retreated recently from ten-month highs amid weak ADP data.
• Yields on 10-year Treasury notes still hover near a 16-year high.
• Markets expect higher neutral interest rates due to tight labor markets and inflation.
• Unemployment claims stayed near yearly lows in late September.
• Services and manufacturing ISM PMIs contribute to economic optimism.
• Fed policymakers express the possibility of another rate hike this year.
• Bostic emphasizes the need for a prolonged terminal funds rate.
   

Technical Perspective of the S&P 500 Futures Contract

The ES Futures contract is exhibiting rotational behavior in today’s overnight session. The market formed an inside day in the prior session, which allows us to combine the volume profiles of the last two sessions to create a composite profile. This composite profile appears to have a more likely p-shaped structure, with the perception of bias leaning toward its Point of Control (POC) level. The highs of two prior sessions might have been targeted for absorption purposes around the release of the jobs report.

Traders are eagerly awaiting the jobs report for September, as it is expected to have a significant impact on market direction.

3 Months Ago

The current slightly higher dollar, with a bullish undertone, could exert some pressure on the market, along with the slightly positive volatility.

Looking at the profile for the current week, it seems to be building volume around the lower range of this week’s price range. This suggests the possibility of short covering and absorption, which could set the stage for a potentially bullish week ahead. However, much depends on the outcome of the highly anticipated jobs report for September.

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