Eye On Friday!

Good Thursday Morning, MPTraders!  January 8, 2026-- Pre-Market Update:  The Elephant in the Room this AM is Friday!

Why?  Because tomorrow morning, the consequential December Jobs Report will be released at 8:30 AM ET, and will put the health of the labor market into focus, as well as forthcoming Fed policy.

In addition, during tomorrow's session-- or just after the close-- the SCOTUS is expected to render opinions on several cases, one of which could be the legality of the Trump Administration's Tariff Policy...

Unless you happen to be in one of the President's preferred (or not) sectors lately, such as Oil Servicing like SLB, HAL (long), Home Buying "Warehouses" like BX (short), or Defense Spending like RTX, ONDS (long), well, you just might feel like a deer in the headlights ahead of tomorrow's session... 

On the subject of Defense Spending, last evening President Trump proposed a significant increase in U.S. defense spending, calling for the 2027 military budget to reach $1.5 trillion — a sharp rise from the $901 billion allocated for 2026. He described the current global situation as "troubled and dangerous times" (or "very dangerous and troubled times" in some reports), justifying the massive boost to build what he referred to as a "Dream Military."... 

My attached 4-Hour Chart of RTX (formerly Ratheon) shows its pre-market spike to a new ATH at 196.16. Since April 2025, RTX is up 78%. Unless and until a bout of weakness below 185.50 inflicts damage to the nearest term uptrend, RTX points higher, to my next optimal technical target zoneof 200 to 204... Last is 191.50... (continued below RTX)...

ONDS (Ondas Holdings) is also getting the benefit of the push for a huge increase in defense spending. This drone software designer is in the sweet spot of emergent new defense technology of drone warfare. My attached Daily Chart shows ONDS' upside breakout from a 5-year rounded base formation that projects MUCH HIGHER PRICES in the months and quarters ahead. 

In the event ONDS pulls back, key support rests below the market at 11.50 to 12.00, which my pattern work considers a buying opportunity ahead of the trek to 18-20 as an intermediate-term objective... Last in pre-market is 13.26... (continued below ONDS)...

From my Big Picture perspective, ES remains in the grasp of its dominant uptrend from the 1/21/25 (Fed Head John Williams') low at 6584.75. As long as any forthcoming weakness is contained ABOVE the 20 DMA-- now at 6922-- heading into tomorrow's session, the technical setup argues in favor of upside continuation in reaction to either or both the Jobs Report and a Supreme Court ruling on tariffs.

Conversely, a CLOSE below the 20 DMA will be a warning signal to me that the directional reaction to the Jobs Report and/or SCOTUS is less certain.

Barring a close below 6922, the dominant trend remains UP, with the bulls eyeing a run above the ATH at 7013.50 en route to my outlier upside target zone of 7130/50... Last is 6954.50...