News:
The latest Jobs Report dropped on Friday. The news brought heavy buying.
- The economy added 223,000 new jobs
- The unemployment rate fell to 3.5% from 3.6%
- Wage growth slowed for a third month up just 4.6% year-over-year
The not-so-big paychecks gave the market confidence that inflation is in fact easing.
After the report was made public markets lurched higher, dropped at the open—creating a bear trap, and surged higher through the rest of the day.
All four major indexes closed sharply higher…
- Dow Jones +2.1%
- Nasdaq +2.6%
- S&P 500 +2.3%
- Russell 2000 +2.3%
Sector Round Up
11 of the 11 sectors ended the day in the green.
At the top…
- Materials (XLB) +3.4%
- Technology (XLK) +2.9%
- Real Estate (XLRE) +2.9%
Bringing up the rear…
- Healthcare (XLV) +0.9%
- Communications (XLC) +1.6%
- Energy (XLE) +0.9%
Our previous bullish call on Materials and Technology have been confirmed.
The bearish outlook on Communications is holding true.
Technicals:
On Friday, the S&P 500 closed at its highest level in three weeks.
Strong buying on Fridays continues to show the lack of fear in the market.
Friday’s breakout is the most bullish thing anyone could have asked for. We are maintaining our bullish outlook.
Our other signals…
- The VIX is trending lower (bullish)
- RSI levels are all neutral
- The Put-to-Call Ratio remained lightly oversold (bullish)
Timing:
Day 4 of 5 for the “Early Warning” is behind us. The S&P 500 is currently up 1.4% for this measure.
Looking forward we have a busy week…
- Tuesday, Fed Chair Powell speaks in Sweden
- Thursday, the latest inflation data is due out in the CPI report
- Friday, Earnings season begins with several big banks reporting premarket
Watchlist:
*Low Float
^Open Position
*EVER support at $13.50, resistance at $16
*EZGO support at $0.90
ZYXI support at $14
FREQ support at $3
COLL on watch
TERN support at $8, resistance at $10
EH support at $12
ORIC resistance at $6
WWE support at $80
CNCE support at $7
FULC resistance at $9.5, support at $9
^CROX support at $110
^PRQR support at $3
FGEN support at $18
HUYA support at $4.50, resistance at $5
CPRX support at $18, resistance at $20
Secondary watchlist, float 100+ million
DDL support at $6
IRDM support at $54
TGTX support at $10
BORR resistance at $5.50
BBWI support at $45
DADA on watch
WDH support at $3, resistance at $3.35
IQ support at $5.50
ROIV support at $8