Economists had expected last week’s first-time jobless claims to rise to 319,000, instead they rose by 69,000 to a 27-month high of 375,000. S&P 500 futures traded sharply lower after the report, raising the chance that this January could be the worst one the S&P 500 has ever had says Bloomberg.

Market breadth on a closing basis indicates that the S&P 500 was approaching overbought territory in the very short-term. Looking further, market breadth is supportive of a continuation of the latest rally off the lows, but a weak economy could be obstructive.