U.S. JOBLESS CLAIMS

After four years of strength in employment figures, weekly jobless claims found support at multi-year low around 300K. Weekly jobless claims reversed from 280K-300K area in 1989, 2000 and 2006. Similar reversal might be in place as we enter the last quarter of 2013. Jobless claims already experienced a sharp rebound over the past few weeks and as long as it stays above 280K-300K area we could see weak employment figures in the coming months. Today’s number came in at 358K and this is clearly above the strong support area. Earlier analysis on the jobless claims can be found here (August 9, 2013 , June 6, 2013)