Mixed jobs data coming out ahead of tomorrow's official report from the U.S. Labor Department are making the markets nervous as Wall Street tries to sort out if the numbers are "good" or "bad". The Federal Reserve has made it clear that the time of the first interest rate hike will be "data dependent" so a positive jobs report tomorrow could keep the Fed on track for a September rate hike. This early hike would likely be bearish for equity markets. Despite disappointing employment figures from ADP earlier in the week, other reports coming out today (such as ISM's non-manufacturing composite PMI) are positive and seem to be spooking equity markets with the September hike possibility.
At mid-day day our stop loss at 17,399 in the DOW was breached, but this index closed the day above at 17,419 so I did not sell my long position. Yes, the DOW making a new monthly low is potentially bearish, but the S&P 500 and NASDAQ have not made new lows (yet), and thus we now have a potential intermarket bullish divergence signal. If worry over a September rate hike abates tomorrow, the market could turn up here. However, if the DOW closes below 17,399 for the week, I will probably sell my long position in the broad stock market. Holding my long position for now.