Job growth fell to 156,000 for August, from a high of 210,000 in June, according to the latest BLS stats.
Unemployment ticked up from 4.3% to 4.4% for August.
What does this mean? Very little, if we look at our real GDP forecast based on total nonfarm payroll multiplied by average weekly hours worked. GDP growth is slow but steady.
The recently published Philadelphia Fed Leading Index for July has slowed but remains comfortably above the early warning level of 1. The index normally falls below 0.5 in the months ahead of a recession.
The S&P 500 is testing resistance at 2480 after a weak correction that respected support at 2400. Bearish divergence on Twiggs Money Flow continues to warn of selling pressure but this seems secondary in nature. Breakout above 2480 is likely and would offer a target of 2540*.
Target 2480 + ( 2480 – 2420 ) = 2540
The Nasdaq 100 is testing resistance at its all-time high of 6000. Bearish divergence on Twiggs Money Flow again warns of secondary selling pressure. Breakout would offer a short-term target of 6250 and a long-term target of 7000.
Target 6000 + ( 6000 – 5750 ) = 6250
The bull market remains on track for further gains.