Major averages nudged slightly higher on lower volume, managing to close near the top of their respective trading ranges. The indexes have all been plumbing their late August lows, and today's jobs report has the futures down sharply. The US non-farm payrolls report came in at 142,000 new jobs vs. estimates of 205,000 and higher. In addition, last month was revised down to 136,000 from 173,000 jobs, while the largely meaningless unemployment report remains at 5.1%.
The meaninglessness of the unemployment rate has been confirmed by the Fed, which last year claimed that a rate of 6.5% would be the threshold at which they would begin to raise rates, but instead they have continued to pass on doing so even as the rate has moved 1.4% below the alleged threshold. Thus the number is largely meaningless, and the Fed knows it.
The Market Direction Model, meanwhile, remains on a sell signal.
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