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The jobs reporttook the wind out of the early December rally, which saw the market nearly return to November's highs in two days of trading.
"This is kind of a blow as we head into the end of the year, definitely," Dan Cook, chief executive of IG Markets told CNBC. "We’re not even staying above water at this point."
Cook noted that the long-term unemployment rate was unchanged at 17 percent, meaning there will be "still be a lot of structural unemployment."
The disappointing result likely means the Federal Reserve will continue with plans to boost the economy through long-term bond purchases, a policy known as quantitative easing, Cook said. ( Read more: Bulls Believe Decline will be Muted ).
As a result, the markets may not react that strongly to the number. Typically, the market usually ends modestly up or down on the day of an employment report, even when the number is surprisingly bad, he added.
"We usually see a lot of quick moves and some profit taking, and it gets settled out at the end," Cook said.
While there will likely be selling pressure in the market throughout the day, traders may be expect the disappointing number may open up a conversation about "QE3," said Todd Schoenberger, managing director LandColt Trading, referring to a third round of long-term bond purchases by the Fed.
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