More economic mixed signals fail to derail the current market. Starting off the day ADP missed consensus while factory orders were better than expected. The market stayed within a tight trading range for much of the day. Volume was lower, but coming off the first day of the month it isn’t surprising institutions not trading the High Frequency route took a break. S&P 500 closed again at an all-time high while the Russell 2000 and NASDAQ composite are still below their highs. The Dow Jones Industrial Average remains just below its all-time high set on the 31st of December. Yesterday was no April fool’s joke with the S&P 500 at all-time highs. Whether or not it is hard to believe we simply follow the trend.
There are rumors among some folks this Friday’s job report is going to be a monster! Current consensus for the March jobs report is at 200,000. Some estimates are pushing above 225,000. Sounds great, right? More jobs the better how can you go wrong? You can’t, we like high paying jobs for well qualified people. However, a great jobs report does not guarantee the market moves higher. It is foolish to expect a jobs print of 225,000 automatically means the market goes one way or another. The current trend for the Dow and S&P 500 is up. Nothing else matters, but the trend in the market. Leave the opining to the “gurus.”
Believe it or not the McClellan Oscillator is nearing overbought conditions. This condition may be hard to believe after last week’s decline. It would do the market some good to consolidate the recent moves without distribution and with leaders moving higher. Maybe that is asking too much for this QE fueled market.
