The Emini Nasdaq longs at support between 25300 and 25200 saw a successful bounce towards the 25800/25850 range. The index is approaching the next target of 26100, with potential to retest the high of 26399. Support remains at 25450/25420, while a buying opportunity exists around 25280/230.
Emini Dow Jones hit a daily low at the 47800/750 support, reaching the target of 48100/150. The index may retest 48528, its all-time high. It has minor support at 47800/750, but would require stops below 47650 for stability.
Canadian Labour Force Update
Statistics Canada is expected to release its Labour Force Survey, with the Unemployment Rate anticipated to rise to 7% in November. The Employment Change is projected to remain flat following a previous increase.
The Pi Network moved lower for the third day, approaching a support trendline as there’s increased supply pressure from Centralized Exchanges. The Moving Average Convergence Divergence indicator indicates potential further dips.
Gold maintains gains but remains below $4,250 in European trading. Traders are cautious, awaiting the September PCE Price Index data, which is the Federal Reserve’s preferred inflation measure.
With the market momentum continuing, we should view any dips as buying opportunities for US indices. The November jobs report this morning came in stronger than expected, reinforcing this bullish trend. Traders can use the Emini Nasdaq support at 25450/25420 to initiate new call option positions, targeting the all-time high at 26399.
Federal Reserve December Meeting
The Dow’s bounce from the 47800/750 support level this past week proved our strategy correct, with the index now targeting its own all-time high. We should continue to use this level for entries, but with the Federal Reserve’s December meeting approaching, it is wise to protect these long positions with trailing stops. The strength seen across the market suggests new highs are likely before the end of the year.
As we anticipated, this morning’s labour report from Canada showed the unemployment rate ticking up to 7.0%. This confirms a cooling in their economy and puts pressure on the Bank of Canada ahead of its rate decision next week. We see this as a clear signal to consider buying put options on the Canadian dollar, as a more dovish central bank policy now seems probable.
While traders were watching the September PCE data back then, our focus has shifted to more recent inflation reports, which have remained stubbornly high. This has kept gold consolidating just below the critical $4,250 resistance level. This tight range ahead of the next inflation release makes a straddle a compelling strategy to trade the expected volatility.
The bearish signals for Pi Network are intensifying as it tests a key support trendline for the third straight day. On-chain data from this week confirms a surge in coin inflows to centralized exchanges, which often precedes a significant price drop. A decisive break below this support would be our trigger to buy put options, as technicals also point to further weakness.
