Divergence between Sahm’s rule and insured unemployment rate, which means the Sahm’s rule could be giving a false signal here. Should be interesting to monitor over the next few days and weeks.
The market is having a positive reaction to this news. The unemployment rate improved slightly, as it decreased from 4.3% in the previous period to 4.2%. A lower unemployment rate generally indicates a healthier labor market, as fewer people are unemployed. So, in this case, the unemployment rate got better.
Native-born U.S. workers are losing their jobs to immigrants.
SQQQ Continues to Show Bullish Momentum
SQQQ is trading near resistance here, but continues to show some bullish strength. I think SQQQ is trending for a green day today, but is likely to experience some downside next week. The market reacted positively to the better than expected unemployment rate, but is not liking that native born U.S. workers are losing their jobs to immigrants. I think overall the data is mixed, the most important factor for me is the unemployment rate improving. SQQQ is still performing very well for now, these are my key levels on the chart to monitor. SQQQ is currently above my the white channel attempting to stay above $9.15 resistance.
QQQ Trading Near $455.68 Support Level
QQQ is also trading near a support level around $455.68, and I would carefully monitor for a rebound here. The price has been neutral over the past few days, but there has been a slight decline today after the August labor report was released. I think investors are concerned about the job loss of domestic U.S. workers, which has also been a key narrative in the presidential election. For now QQQ is likely to rebound around $455.68, and the yellow trendline is a key resistance target on the way up.
Bears are still clearly in control here. I think the mixed data makes it confusing, but the market is maintaining bearish sentiment for now.
Failed rebound for NVDA, we could see the price drop below $100 during this downtrend. I would carefully monitor NVDA for a rebound because NVDA is driving the price of the S&P and NASDAQ.
NVDA Testing a Key Support Level at $102
There is also another important support level for NVDA here around $102. I would carefully monitor to see if this $102 support level holds. I think today will be a red day, early next week we are likely to see a rebound.
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Thanks chart champ! Do you think we’ve seen the bottom for the September sell off after the first week with potential rallying next week with inflation?