Tomorrow is the day we get to enjoy some fireworks or so we think. The first Friday in October and we’ll get a read on how many jobs the economy created in the month of September. Hard to imagine a bad number would be reported ahead of the November election. We did see the market roll over today only to see buyers step up and support the market. Alan Greenspan spooked the market with his comments about his worry of Brexit spill over. At the end of the session stocks were well off their lows with the S&P 500 closing in positive territory. We still have a positive bias given our holdings and how the overall market has reacted. For now, we have our position sizes right and exits in place.
Not much to get overly excited about there. The S&P 500 needs to get itself above its 50 day to really get things going again. Meanwhile, the NASDAQ and Russell 2000 continue to look good. We’ll stick with the strength of this market rather than guess with the laggards.
AAII bulls once again were sub-30% this week. For the 7th straight week the number of bulls were less than 30%. In all fairness Bears ended the week with 28%. Neutral respondents continue to be the dominant force in the survey. Will sentiment change any time soon?
All eyes will be on the Fed at 8:30 am. September jobs will be released and we can enjoy the fireworks afterwards. Stay the course! Have a great weekend!
