Friday’s session was a super bullish session, but this market needed a rest. Volume was lower on the day as many traders were taking a break. It almost as if the market was still hungover after Friday’s party. Crude oil fell to a 35 handle as we approach the most anticipated oil producers meeting in quite some time. Not quite like the jobs report every month, but the decision to freeze production or not will likely lead to volatility in oil prices. Whether or not it bleeds into the stock market is a different story. We continue to stay within our uptrend. Stick with the game plan.
There is certainly a good chance we see this market pull in a little bit. For swing traders the mid-point of last week is a good point as a first sign a more sizeable pullback is near. A good sign is the S&P 500 continues to remain above its 50 day moving average as well as its 200 day moving average. If the S&P 500 remains above these key moving averages the greater the chance, we see higher prices.
We had a good jobs number on Friday night. Initially, the market did not like the better than expected number as it may have had the Fed move the rates higher sooner than expected. Just after the market opened buyers flooded the market. We still have a market in need of a serious consolidation period. Given earnings are coming up as well as the oil producers meeting there is quite a bit of noise headed for this market. Stick with price action.
Today was not all that bad. We will keep pushing forward and making gains for our portfolios.
