The bulls needed a Monday win to relieve some of the pressure from the prior Friday pullback, and after a volatile session, got a much needed split with the blue-chips and broader market finishing higher.
Terrific Tuesday was once again good to the market as the Dow and S&P 500 are running with 7-session win streaks. Wednesday’s session saw a push to resistance and a run at fresh highs to end April despite the Fed’s announcement for more tapering. These clues, along with our other market indicators, gave us a good feeling there would be a continued push to fresh highs into Thursday.
The start of May did see a run at all-times highs on the Dow but a tight trading range developed after the open. We expected a flat session ahead of Friday’s Nonfarm Payrolls (NP) report with a slightly lower close as the bears followed our plan.
Friday’s open was a tossup as Thursday’s clues were both bullish and bearish. Futures were slightly higher after midnight and remained that way into a fantastic NP report that showed 288,000 jobs were added. We said a number between 280,000-300,000 would be super bullish as our projections were 60,000 higher than Wall Street’s numbers but the bulls failed to capitalize on the good news as the bears held resistance. (continued…)