The S&P futures are all over the place this morning after the headline Unemployment Rate breached the psychological 10% level (10.2%) along with weak Service Employment Change data. Today's data certainly takes the wind out of yesterday's rally and tells us that the Fed could in fact keep monetary policy in check for quite some time. This could be a reason why both the Cable and EUR/USD are holding strong despite such a negative fundamental occurrence, buoying the S&P as a result. In fact, the S&P futures have recovered from intraday lows and are holding strong above the psychological 1050 level. On the other hand, crude and the USD/JPY are reacting negatively as one would expect. Regardless, the overall reaction in the equities markets and the U.S. Dollar is counter-intuitive, telling us investors may still be digesting all of the news. Therefore, there's a possibility of volatility increasing as the session progresses. As a result, investors should keep a sharp eye on the markets and look for any significant technical developments.

Technically speaking, our 2nd tier downtrend line continues to serve as a topside obstacle along with 10/26 and 10/21 highs. As for the downside, the S&P futures have a couple uptrend lines serving as technical cushions along with 11/5 and 11/3 lows. Furthermore, the 1050 level continues to serve as a psychological support. Overall, the S&P futures remain at a crossroads with our uptrend and downtrend lines gradually approaching their respective inflection points, indicating further volatility could be on the horizon.

Price: 1062.75

Resistances: 1067.25, 1073.75, 1079.5, 1083.5, 1089

Resistances: 1057, 1047.5, 1043.25, 1036, 1028.75

Psychological: 1050, 1075, 1000

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