Today’s non-farm employment change was nearly twice as bad as consensus expectations and the worst in 34 years, slamming futures on all major US indexes sharply lower. This economic data confirms that the US economy is in a deep recession and puts in jeopardy the consensus GDP estimate of -4%. We may see a number as bad as -8% on the next quarterly GDP report because of the massive contraction in employment and ISM data.
Should the negative sentiment continue, this sell off could push markets much lower. Futures are hovering at support levels and could be pushed significantly lower at open. Watch this market closely today. The price action will be extremely important in determining the next likely move.
