Heading into tomorrow’s main event – the nonfarm payrolls print (which is the appetizer for CPI next Wednesday), JPMorgan’s trading desk asked a rhetorical question: what’s better for markets: 50K or 400K jobs for NFP?

It answered as follows: “50K NFP gets the Fed closer to “Mission Accomplished” as they are nearly there with housing markets (lower prices pending). I think a 400k print would have bond yields reprice higher, potentially taking the 10Y yield above 3% which has acted as a resistance point for Equities, recently.”

In other words, good news is bad, and bad news is great news, precisely as we said would be the norm moments after last week’s Powell presser in which he said that forward guidance is now dead and instead the Fed is data dependent.

Goldman agrees, and flow trader John Flood writes in his EOD wrap that “we are firmly in a BAD is GOOD

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