Jobs Data inbound, will Markets plunge further?
Tonight (AEST), the US will print their employment report for the month of September. On the back of last weeks efforts to avoid a Government shutdown, officials have been very busy to ensure ‘everything is normal’, while anxiously watching the SP500 dance against its 200MDA and now look to find a new floor.
In an interesting turn of news, employment data for job openings vastly exceeded expectations, with 8.8M estimated and 9.6M printed. An additional 800,000 available jobs definitely puts strain on the economy in many ways, mostly around company pressure to fill labour requirements. There’s more than one way for businesses to bankrupt, and not having staff to complete tasks is definitely in the top 3.
Factory orders also beat estimates, jumping from 0.2% to 1.2% – suggesting that businesses have been delaying inventory orders to balance their spends but are now unable to delay their orders any further.
With retail spend still alarmingly high compared to the Governments priority on reducing inflation, we could well be looking down the barrel of more interest rate rises in the coming 6 months.
Gold and Silver have also continued their aggressive pullback. With Gold’s resistance sitting around US1800, current pricing of US1821 is showing some resilience. Both metals are extremely oversold, with gold’s RSI currently sitting at 20 (anything below 30 is considered oversold).
Next week we’d hope to see some rally relief for both gold and silver, so to start pulling back in line with their 200MDA.
We’ve included both precious metals and the SP500 charts for you today, as well as technical forecasts below.
Gold, with 200MDA
Silver, with 200MDA
SP500, with 200MDA
Gold Futures Technical Analysis
Gold futures monthly analysis is a NEUTRAL with weekly analysis a STRONG SELL signal.
Technical indicators – Monthly Projections
| RSI(14) | Neutral |
| STOCH(9,6) | Neutral |
| STOCHRSI(14) | Sell |
| MACD(12,26) | Buy |
| ADX(14) | Sell |
| Williams %R | Sell |
| CCI(14) | Neutral |
| ATR(14) | Less Volatility |
| Highs/Lows(14) | Neutral |
| Ultimate Oscillator | Sell |
| ROC | Buy |
| Bull/Bear Power(13) | Sell |
Summary for Monthly forecast: NEUTRAL
Disclaimer
This news and any links provided are for general information only and should not be taken as constituting professional advice from Jaggards. Jaggards is not a financial adviser. We recommend you seek independent financial advice before making any financial decisions based on the information contained in this article.
