Jack's Wrap
Nightly technical market analysis by Jack Steiman covering both the session's activity and the near-term market directional trends.
The Wall At S&P 500 1151 Holds For Now....
But won't forever in my humblest of opinions. We could very well pull back from here due to being overbought on the daily charts but in the end, I don't think the bears will be able to hold the S&P 500 from joining its brothers and sisters on taking out major resistance. There is money rotating and not leaving this market and that's always the number one sign of a market under accumulation. If a market is in bad shape, or distribution, then sector by sector starts to fail and lose support.
Grinding Action At Overbought....
We finally saw the market pull back some late today as those high RSI readings kicked in. It wasn't the type of selling that says the market is doomed from here because that's not likely the case at all. When markets get overbought they need to unwind so you have to look at the selling that takes place more as an opportunity rather than a -- it's all over for the market -- type of situation. Selling is never fun if you have a long bias and it doesn't take very much selling to kick fear in pretty hard.
Grinding Action At Overbought....
Which is exactly what we're doing right here. With S&P 500 resistance at 1151 and with many index charts at 70 RSI's, it's not easy here for major upside until we get some unwinding of those daily charts to where the RSI's are at least in the lower 60's, if not somewhere in the 50's. It's not just that we're overbought, but again, when you add in major resistance 1% away, it makes the journey that much more difficult for sustained upside in the short-term.
Running Higher...
What other expression fits this market but that. We gapped up this morning on a much better than expected employment report. Far less jobs lost than expected, even with the bad weather. This gave some decent futures a bigger bump up and off we ran. First we saw the bears fight some giving the indexes an early black candles but it didn't last long as the bulls took over. The Nasdaq out performed all day but the other major indexes did quite well on their own.
Jobs.....Market Holding Well Into The Report...
So yes, tomorrow is the big jobs report ahead of the open. It's already out there that the numbers will likely be poor due to the weather headaches this country has been suffering with thus some bad news is baked in ahead of the numbers. There are so many different ways this can play out. We all know that the market will do what it intended to do before this number comes out. You can't ever stop a market from doing what it wants, no matter what news hits.
