After a massive late-day comeback on Thursday, the U.S. indices have opened Friday’s session negative. In the first hour since the cash open, the DJIA is off 150 points, followed by a drop of 15 for the S&P 500 SPX. Sentiment is shifting negative as the markets are showing signs of exhaustion.

During the U.S. pre-market, the employment numbers for November hit the newswires. It was not the normal strong tone we have come to expect, but a bit of a downer. Here is a look at the hard data:

Event                                                               Projected   Actual

Average Hourly Earnings (Nov., YoY)             3.1%         3.1%

Non-Farm Payrolls (Nov.)                                200K        155K

Unemployment Rate (Nov.)                             3.7%         3.7%

U.S. Non-Farm Payrolls for November came in well under projections and the previous release. While most analysts are willing to chalk the downturn up simply as a pre-holiday lull, the decrease does buck an uptrend. However, the aggregate Unemployment Rate is still well under the FED’s benchmark of 4%, a strong signal that the economy remains in an expansionary cycle.

S&P 500 Technicals

After a “crazy” Thursday, the December E-mini S&P 500 has put in a test of topside resistance. Price is trading around the 2675.00 level, quite the bounce from yesterday’s lows of 2621.25.

Here are the resistance levels to watch for today:

• Resistance(1): Daily SMA, 2697.50
• Resistance(2): Bollinger MP, 2716.75

Overview: At press time, the U.S. indices are beginning to show signs of weakness. The early session rejection of the Daily SMA by the December E-mini S&Ps is an ominous sign. Anything can happen, but a drop to the 2650.00 level is very possible. For now, I am in wait-and-see mode when it comes to the U.S. indices.