Stocks rallied strongly on Thursday, in front of Friday's May jobs report. The Dow gained 99-points and small caps led the way.
I was traveling most of Friday and will be out of town for several days. That means I'm on the laptop with a mediocre internet connection, and that means today's report will be brief. To me this set up is like running in peanut butter.
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The SPY (S&P 500 / C-fund) broke above if rising wedge and the strength is somewhat surprising. Many folks have been anticipating a pullback here at resistance, but it was not to be - at least not yet. It is a nice chart but Friday's jobs report may have an impact.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
The Russell 2000 did break to the upside of that bull flag we have been watching. I thought it had gotten a little to long on the flag, but no - we did get the bull flag breakout. There is some new resistance overhead and we'll see if the jobs report can help move it above that resistance, or whether it will swat it back down.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Bonds rallied yesterday but the AGG has broken its rising support line so this could just be a relief rally. There is a small open gap above that may need to get filled, and there could be a test of the old support line, so the short-term may lean bullish for bonds, but the intermediate-term will need more help to negate the negative breakdown.
Chart provided courtesy of www.decisionpoint.com, analysis by TSP Talk
Today (Friday) we get the May jobs report and estimates are looking for a gain of about 220,000 jobs, and an unemployment rate of 6.4%. Sorry that I forgot to post about the jobs report contest. It is going on but may be closed before you read this.
I should be busy most of the day today so let me apologize in advance for any late responses to emails, and messages.
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Thanks for reading! Have a great weekend!
Tom Crowley
Posted daily at TSP Talk Market Commentary
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