Well, the magical double-digit unemployment rate is with us again. I don't think this has happened in about 18 years or so. In spite of the government's machinations with the numbers, it is undeniable – – the unemployment situation is getting worse.
This news had an immediate effect on the e-mini markets. I was watching the /ES, and moments before the report came out, the /ES vaulted a few extra points higher – – I suppose by those hoping to get in front of a surprisingly good report. Surprise! The /ES lost its own version of double digits within a few seconds.
Looking at the /NQ, it is easy to see a head and shoulders in formation. There are two things to remember, though. One, it's in formation; it isn't complete. And two, as we oh-so-well remember from this summer, these patterns can fake you out unless they decisively break the neckline. But if it does, I'd put the measured target about where that yellow tint is.
