Stocks are modestly higher this morning ahead of the September jobs report, with Nasdaq futures showing the most strength. Treasury yields remain elevated, with the 10-year near 5.25%. The Dollar is holding near 102, Gold is trading around 4180, Oil remains above 92, and Bitcoin is higher.
The divergence within Stocks is the most interesting development. The S&P and Nasdaq are consolidating their recent advances out of their DCLs, while the Dow and Russell are still searching for their Daily-cycle lows. If the Dow and Russell form their DCLs while the S&P and Nasdaq hold their recent gains, the indexes could begin to synchronize.
Nothing in this morning’s action materially changes what we are following. Gold is still trying to form its DCL, while the Dollar remains strong as it approaches important larger-cycle resistance. The September jobs report is due at 8:30 and may provide the catalyst for the next piece of evidence.
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