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Breakout Threatened

Published 07/06/2018, 08:51 AM
Updated 07/09/2023, 06:31 AM

The jobs report just came out and it was stronger than expected. For whatever statistical reasons the BLS may have, the unemployment rate has slipped higher from 3.8% to 4.0%. Thus, as I’m typing this, interest rates are easing back a little and equities seem to be winding up for a breakout from a base. In the case of the ES, a level of about 2748:

Emini S&P 500

And for the NASDAQ, something close to 7160:

NASDAQ

Interestingly, the bonds (ZB) have been following a fairly clean pattern all year long. They seem to be approaching an important reversal point with today’s buying.

ZB Chart

And, as some of you are already aware, news FAR more important than the monthly jobs report was also released this morning:

Zerohedge

Latest comments

Too late Tim. Another bullish breakout. Are you shorting this one, roo?
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