September starts off with stocks closing mixed. Just after the market open the market began to see sellers pound on the market sending stocks to their lows of the session. Just like we have seen this week buyers come to the rescue. The NASDAQ led the market higher with the Dow sneaking out a 10bps gain. The S&P closed flat along with the Russell 2000. Not many traders looking to make big bets ahead of tomorrow’s job report. We are not seeing red flags from this market and continue to see solid price action. Who knows what tomorrow’s number will do to the market. As of now we are looking like this market can go higher.
Sentiment from the AAII survey shifted towards the bears this week. AAII Bear index ended the week at 32% while bulls landed at 29%. Certainly these low numbers would suggest stocks could very well move higher. The crowd is not behind this market. While the retail market isn’t behind the market the so called “smart” money is long this market. NAAIM exposure index closed lower by 9 points. When will retail get behind this market? What will it take for them to jump in? New highs are certainly not enticing enough.
Tomorrow at 8:30 am EDT all eyes will be watching how big or small the August job is. We continue to get new long signals and we are going to take our signals. Let’s see how we close up the week. Have a great long weekend!
