Employment worries helped to trigger a sharp sell-off in U.S. equity markets on Monday, leading to speculation that the month will end with another weak day on Tuesday. The problem with the market this week is Friday’s Non-Farm Payrolls Report. The market is looking for a decline of 106K to 120K and a jobless rate of 9.6%. Investors are worried that after a summer of weak economic reports, the season will end with a bearish jobs report.
Monday’s ho-hum Personal Income and Personal Spending reports did not provide the power stocks needed today to sustain earlier gains. This led to a day-long sell-off which took the markets beyond a normal short-term retracement and left them in a position to challenge last week’s lows.
Thin trading conditions and a plethora of economic reports can fuel a pretty volatile day on Tuesday. Shortly after the start of tomorrow’s trading session, investors will have the opportunity to digest the housing market with the Case-Shiller 20-city index, manufacturing with the Chicago Purchasing Managers Index and Consumer Confidence. Later in the day, the Minutes of the FOMC Meeting will be released. This report will give opportunities a peek at what the Fed discussed at its last meeting when it decided to leave interest rates unchanged, but shift the proceeds out of mortgage securities into Treasury securities.
Early in the trading session, the September E-mini S&P 500 rallied in a follow-through move following Friday’s robust closing price reversal bottom. The market ran out of steam early in its attempt to retrace to 1082.25 to 1093.00. The subsequent sell-off and weak close has put this market in a position to challenge a major uptrending Gann angle at 1042.75 and the last swing bottom at 1037.00. A break through this area could trigger an even further decline into the next uptrending Gann angle at 1022.75. 
Local: 312-896-3930
Toll Free: 800-971-2440
Email: Info@BrewerFuturesGroup.com
Website: www.BrewerFuturesGroup.com
DISCLAIMER: Futures and options trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures and options may fluctuate, and, as a result, clients may lose more than their original investment. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. In no event should the content of this correspondence be construed as an express or implied promise, guarantee or implication by or from Brewer Futures Group, LLC, Brewer Investment Group, LLC, or their subsidiaries and affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of options and/or futures positions such as “spread” or “straddle” trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
