The jobs number came in sharply lower than expected showing that U.S. employers have not been hiring over the last two months and wages as well fell in September. With this turning point 2015.75, we should begin to see declining economic numbers and a closing on the Dow below 15970 today will warn of a retest of the August low.
The weak jobs number is now raising new doubts the economy is strong enough for the Federal Reserve to raise interest rates by the end of this year. We are starting to see that higher rates are linked in thinking to stronger economic growth. When the economy declines, rate expectations decline. This is the real view of interest rates and their relation to the marketplace.
If the August low of 15370 gives way, we appear to be headed to that slingshot move where we first move down and trap everyone bearish to provide the fuel to rise again initiated by short-covering.
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