During the session on Friday, the only focus that the markets will have will be on the Non-farm Payroll numbers. The employment situation in the United States of course is vital for the economy that makes up the world’s largest consumer goods, which of course has a “knock on effect” around the world. With that being the case, it really comes down to how the market interprets the numbers. More often then not though, what happens is any type of knee-jerk reaction gets reversed unless of course he goes with the overall trend.
Looking at the S&P 500, you can see that nothing happened on Thursday of any circumstance. The 2040 level continues to be supportive in our opinion, and any attempt to break down below there will more than likely see call buyers step into the marketplace. We would love to buy on a short-term supportive candle in that general vicinity.
S&P 500
The EUR/USD pair had a very bullish session on Thursday, but quite frankly we see far too much in the way of resistance near the 1.10 level to get too excited. We believe that buying puts on resistive candles will be the way to go going forward, and we simply are awaiting that opportunity at this point in time.
Gold markets were fairly quiet on Thursday as well, as we deal with the reality of $1200. Quite often, gold markets are very volatile after the Non-farm numbers, as it has such a great influence on the value the US dollar. Because of this, we feel that it’s probably best to stay away from this market at the moment.