The market put in a solid session yesterday after the employment report came in stronger than expected. The major averages opened higher and after some early selling rallied into the close. All the major averages finished near their intraday trading highs. The COMPQ and the NDX gained 1.22% each and the SPX rallied .90%. Volume was lower across the board. Leading stocks rallied as well with the leaders index gaining 1.45% on the day. The index closed high in its trading range on lower and below average volume. The market reacted well to news of a strong jobs report. It seems that good news is good news now and the market seems to be more concerned about the economy than interest rates. One might have expected the market to not react as well due to concerns about the Fed not being as aggressive in cutting rates. The leaders index broke above its current consolidation, but so far the major averages have not. The market is acting pretty well overall right now. We are entering a favorable seasonal period and we are likely to get a weekly Coppock buy signal in the next couple of weeks. I think the resolution to the current consolidation will be to the upside. Jerry
Reply With Quote