Daily Analysis

Stock Indices

A better than expected U.S. Non-Farm Payrolls Report helped drive equity futures markets to a new high for the year early in the trading session. Investors bought up stocks after the release of the bullish employment report which may have been a sign that the U.S. economy is on the road to economic recovery.

Stock market gains were pared late in the session as buyers took a breather due to overbought technical factors and a fundamental issue. Fundamentally, traders were still concerned that despite a slow down in the number of jobs lost, the unemployment rate may still climb to 10%. This number was reiterated by the White House.

The rally in the September E-mini S&P 500 helped form a new main bottom at 989.75.  A trade through this price will turn the main trend down.

The September E-mini NASDAQ posted a gain but could not take out the high for the week at 1632.50.  In the process it lost its leadership to the S&P 500.

The September E-mini Dow found resistance at the 9400 level.  The close was weak with this market almost posting a daily closing price reversal down.