A weak jobs numbers was more than enough of an excuse for some overdue profit-taking this morning. All of yesterday’s gains have been given up, and then some, as a result of the gap down. Although this is a summer Friday and we could see the market trend lower the rest of the day, I have been saying all along that the true test of mettle for the bulls will be after the recent sharp rally has been digested.
We know that the initial profit-taking can be fierce, but after that the issue becomes just how strong the underlying bid to this market truly is. If you are up on positions and have some cushion here, the sell-off is easier to swallow. Moreover, those patient bulls who resisted going “all-in,” chasing into the move higher yesterday, are feeling pretty good today about showing discipline.
As the session progresses, that old 1330-1332 area on the S&P 500 looks to be in focus in terms of a support line in the sand. We are currently above it by a few points, but the dip-buyers have yet to show up today.
a test of the 50dma on the indexes would be healthy and constructive imo?
Does not have to happen at all. Better to let it unfold than picking a m.a. like that.
The market ain’t panicking isn’t panicking this sell down.
Funny pattern I’ve noticed with this stupid number. the market seems to always react the following week starting Monday. If there is no downward reaction Monday this thing is going straight back up.
dunno why the market is down. people are getting paid less to do more and corp’s are staying slim… s+p gets 40% of its profits overseas. i have been long since /es 1260 and am holding out for 1400 🙂