If you're trading today, buckle up. We're looking at the most significant data dump of the week, and markets are about to digest a lot of information very quickly. The December employment report drops this morning, bringing with it the unemployment rate, underemployment rate, non farm payrolls, private and manufacturing payroll changes, labor force participation, average hourly earnings, and average weekly hours. That's a mouthful, and it matters because this data shapes expectations around economic strength, wage pressures, and where the Federal Reserve might head next with policy decisions.

At the same time, building permits and housing starts will hit the tape, offering insight into whether the housing sector is holding up or starting to crack. At 10:00AM ET, attention shifts to preliminary University of Michigan consumer sentiment and inflation expectations, which tells us how households are feeling about future price pressures and economic conditions. Then at 12:00PM ET, we get household change in net worth, adding context on financial stability. As if that weren't enough, Fed speakers Kashkari and Barkin will chime in at 10:00AM ET and 1:35PM ET respectively, potentially adding color to how policymakers are thinking about all this data.

With this much information flooding in, expect elevated volatility, fast directional moves, and potentially sharp reversals. Let's break down how the technical levels are setting up for the major indices and tech heavyweights heading into this critical session.

SPDR S&P 500 ETF Trust

SPDR S&P 500 ETF Trust (SPY) opens the session at 690.75, and that level is acting as a short term pivot point where buyers will want to stay engaged early. Holding above 690.75 keeps upside pressure intact and opens a path toward 692.25, where momentum could accelerate if payroll data supports risk appetite. Continued strength from there may allow SPY to push into 693.75 and potentially 695.00 as larger participants reposition following the employment release. These upside zones reflect areas where buyers may attempt to build acceptance once volatility settles after the data.

On the flip side, if SPY loses 690.75 following the numbers, sellers may quickly test 688.75 as the first area of demand. Failure to hold there could invite a deeper pullback into 687.00, where buyers will need to step in to prevent further downside. Continued weakness exposes 685.25, a level that becomes increasingly important if the data sparks risk off flows. A sustained break lower would suggest sellers are in control as the market reprices expectations around growth and labor conditions.

Invesco QQQ Trust Series 1

Invesco QQQ Trust Series 1 (QQQ) begins the day at 622.50, sitting near a critical inflection point ahead of the employment report. Buyers will want to defend this level to maintain bullish structure. Holding firm could allow QQQ to work into 624.25, where traders will assess whether tech leadership remains intact. Strength through that area may extend into 626.00, with upside momentum potentially fueled by a favorable read on wages and participation. These levels reflect areas where dip buyers have recently shown interest.

If QQQ breaks below 622.50, sellers may press price into 620.75 as volatility expands. Losing that zone could open the door toward 618.50, where buyers must respond to stabilize the tape. Continued downside pressure could reach 616.75 if the market interprets the labor data as restrictive for future growth. These downside levels represent prior support zones that become vulnerable during high impact data sessions.

Apple Inc.

Apple Inc. (AAPL) trades at 259.50 as the session begins, with buyers attempting to hold ground amid broader market uncertainty. A sustained hold above this level could push price into 261.25, where short term momentum may build. If strength continues, Apple could stretch into 263.00 as traders rotate into large cap stability following the data. These upside targets signal areas where buyers may press their advantage if the macro backdrop remains supportive.

If Apple slips below 259.50, sellers may test 258.00 quickly. A failure there exposes 256.75, where buyers have previously stepped in. Continued weakness could bring 255.00 into focus, especially if risk appetite fades after the employment release. These downside zones matter because Apple often reflects broader market sentiment during volatile sessions, making it a useful barometer for how institutional money is positioned.

Microsoft Corp.

Microsoft Corp. (MSFT) opens at 476.25, sitting in a consolidation range heading into the data. Buyers will want to see price hold above this level to keep upward momentum alive. A push higher could target 478.50 initially, with follow through toward 480.75 if the market reacts positively to the employment figures. These levels represent zones where buyers may gain confidence if employment data supports continued economic expansion.

If MSFT fails to hold 476.25, sellers may drive price into 474.50 as the first test. A breakdown there increases risk of a move toward 472.75, where demand becomes critical. Continued selling pressure could expose 470.50, signaling broader weakness across mega cap technology if macro conditions disappoint. Watch how Microsoft behaves relative to the broader indices, as divergences can signal important shifts in market leadership.

NVIDIA Corporation

NVIDIA Corporation (NVDA) begins the session at 186.00 with heightened sensitivity to macro volatility. Buyers will aim to defend this level early as a base for continuation. Holding above 186.00 opens upside potential toward 188.25, where momentum may accelerate. Further strength could push price into 190.50 as traders lean into growth names if wage and employment data come in supportive.

If NVIDIA breaks below 186.00, sellers may test 184.75 quickly. A failure there exposes 183.25, where buyers will need to respond decisively. Continued downside could reach 181.50 if risk appetite contracts sharply. These levels are particularly important because NVIDIA often exaggerates broader market moves during high volatility sessions, making it both an opportunity and a risk depending on your positioning.

Alphabet Inc Class A

Alphabet Inc Class A (GOOGL) trades at 328.50, holding near recent highs as traders await the data. Buyers will want to maintain support here to keep upside momentum intact. A move above this level could target 330.75, with continuation into 333.00 if sentiment remains constructive. These upside zones reflect areas where trend strength may attract additional buyers once the data settles.

If GOOGL slips below 328.50, sellers may pressure price into 326.75. A breakdown there could extend toward 325.00, where buyers have previously defended. Continued weakness could expose 322.75 if selling accelerates. These levels will determine whether Alphabet maintains its leadership position or enters a corrective phase that could last several sessions.

Meta Platforms Inc

Meta Platforms Inc (META) opens the day at 645.00, sitting at a key decision point ahead of the employment data. Buyers will look to hold this level as a base for higher prices. Strength above 645.00 could drive price into 648.50, with follow through toward 651.75 if momentum builds. These moves reflect confidence returning to higher beta names in the event that economic data comes in balanced.

If META loses 645.00, sellers may test 642.25 quickly. A break there exposes 639.50, where demand becomes important for maintaining the recent uptrend. Continued downside could target 636.75 if the market shifts risk off. These zones will help determine whether META remains in an accumulation phase or enters a broader pullback that could test deeper support levels.

Tesla Inc.

Tesla Inc. (TSLA) starts the session at 437.50, with volatility expected to expand as the data hits. Buyers will attempt to defend this level to stabilize price action. Holding above it could allow a move into 441.00, followed by a push toward 444.75 if sentiment improves following the employment report. These levels reflect areas where momentum traders may re engage if the data supports the growth narrative.

If TSLA breaks below 437.50, sellers may drag price into 434.25 quickly. A failure there opens downside risk toward 430.50, with continued weakness potentially reaching 427.75 if selling intensifies. These downside levels are critical because Tesla often reacts sharply to shifts in macro expectations, and options positioning can amplify moves in either direction.

The Bottom Line

Today is all about the data. Stay patient, manage risk tightly, and let the numbers guide your trades rather than getting caught up in pre market narratives. With this much information hitting the tape in a compressed timeframe, the initial reaction may not be the final reaction. Wait for confirmation at key technical levels before committing size, and remember that Fed speakers later in the day could shift the narrative if their interpretation differs from the market's initial read. Good luck, and trade safely.