sp'weekly7, rainbow
sp'monthly
Summary
*with a second day of strong gains, the weekly 'rainbow' candle has flipped from red to blue. What is clear... sp'1992 now makes for a very clear spike floor.
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It has been a rather remarkable two days of gains. As has been the case in the previous two down waves, the rebounds are stronger.. and faster than the down waves.
Looking ahead
Friday will see the monthly jobs data.. market is seeking net gains of 245k, with a slightly lower headline jobless rate of 5.7%. Those estimates do not look overly bold, and I'd expect the data to come in better than expected.
There is also wholesale trade data.
*Fed official Lacker will be speaking on the economic outlook around 1pm... its possible that might be an extra reason for the market to move, with another tranche of short-stops in the 2070/80s.
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Good news is bad news?
Reading around today, I'm seeing a fair bit of chatter along the lines of 'ohh, the market will sell down on the jobs data'. Really? Today was only day'2 to the upside, and typically, this market can quite comfortably rally for 5-7 days. Even if the market opens somewhat lower tomorrow, considering the past two days of price action, a third consecutive daily gain looks highly probable.
*I am long the market, via the R2K. As ever.. with the weekend looming... I might well exit into the weekend, and then start afresh next Monday.
Goodnight from London