Indices Drop Ahead of NFP Report
10 March 2023
Although the calendar was light yesterday, the stock market took a sharp downturn, triggering a mid-term sell signal for several indices. For example, the Dow Jones broke below the 32500 support level, potentially signaling a further drop. Meanwhile, the S&P 500 also declined, but the price is still above the long-term downtrend line, which may be seen as the last legitimate bullish support.
Today's calendar is extremely busy, starting with Japan's monetary policy meeting, the last one led by Haruhiko Kuroda. The decision not to make any changes in monetary policy was viewed negatively, causing the value of the Yen to drop. The UK's GDP report brought a positive surprise with a reading of 0.3%, causing a significant gain in GBP.
More market-moving events are expected today, including the job data reports from the US and Canada. It is a Non-Farm Payroll Friday, with an expected job gain of 224K. This would be a significant decrease from the previous month's impressive gain of 517K.
Ahead of this data, indices are attempting to correct yesterday's drop, while the Dollar remains largely unchanged. However, the Oil market is in dire straits, with Brent breaking a key mid-term support level, suggesting the situation could deteriorate further.