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Premarket report using Emini S&P futures

U.S. stock futures slid and government bonds rallied Wednesday after data showed that the private sector added fewer jobs than economists expected in July, fueling concerns that the rebound may be faltering. ADP showed that 330,000 jobs were added by the private sector in July, almost half the number that economists were expecting. In bond markets, the yield on the benchmark 10-year Treasury note dropped to 1.146% from 1.174% on Tuesday. Yields move inversely to price. ON participation is a bit tilted toward the buy-side despite the fact that the futures ticker is moving lower indicative of participants wanting to protect the 4400-price handle. It is going to be bit of tussle today to keep higher than yesterdays’ RTH High. Valuation, however, remains intact with the Tech heavy Nasdaq futures holding support here into the morning and will be key to the success of the broad market futures staying above 4400.

Possible scenarios and outline for trade positioning

• The ideal long trade today would be a 6-point wider band stretching from 4396.75 to 4402.75 and a stop at 4391 and targeting at least initial resistance which now sits at 4423.75 as profit target.
• Shorts from the ON session already active from about 4413.75 will likely seek a profit target into the bottom end of that long trade ideas’ band which is 4396.75. In short we could be range-bound today.
• At the time of this writing [8:55 am], we have pulled nicely lower from yesterdays’ settlement therefore gap rules are in play.

Key Levels to factor for the intraday price movement.

TPO Profile Map

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