Market Weaker After Worse Than Expected Jobless Claims

Market sells off initially in response to 30,000 more jobless claims than consensus estimates.

Initial Claims 445K vs 415K
December PPI +1.1% vs +0.8%
December Core PPI +0.2% vs +0.2%
Continuing Claims falls to 3.879 mln from 4.127 mln
November Trade Balance -$38.3 bln vs -$41.0 bln

1290 is now a key level on the ES assuming we trade that high today or tomorrow. CPI, Retail Sales and Industrial Production due out tomorrow morning... I continue to like shorting new highs as we are approaching a short-term market top. Just remember, no defense on shorts in this bullish environment. Shorts now are speculative as there has been no break in this bull market's up-trend.

Ahead of the Data

Markets trading near yesterday's highs ahead of this morning's data with PPI and Jobless claims due out in 15 minutes (8:30am EST).

Watch the 1286-1288 price point (ES). I like shorts here assuming the data this morning's is not overwhelmingly positive.

Resistance above at 1285-1286, 1287-1288, 1290. So really, anywhere up to 1290 from the current high of 1284.50. If I have to pick a number it would be 1287

Support below at 1277, 1270, 1265