Non-farm Payrolls Heavyweight Incoming, Beware of Sharp Drop Risks

Tonight's non-farm data is extraordinary and is considered the key to the Federal Reserve's future rate cut pace. Coupled with annual data revisions, leading indicators have all weakened, and market volatility is high.

From a fundamental perspective, last week's ADP employment data was weak, with job openings falling to a near five-year low, clearly signaling a cooling U.S. labor market. Due to a previous government shutdown, non-farm data was delayed until tonight's release. The overall market expectation is bearish, and a major move is imminent.

In terms of market trend, until higher-level timeframes stabilize and close positive, consider holding off on long positions. Current prices are under pressure below the moving averages, and the short-term downtrend has been recognized by the market. Rebound potential is limited, and bullish sentiment remains weak. If the key support at 65,000 is broken, the next likely target is around 60,000.

With the year-end approaching, it is crucial to strictly control risks. Protecting your principal is more important than aggressive gambling.

Wishing everyone a smooth New Year and abundant wealth in the Year of the Horse!