Market Update Into 5/10: Market Smirks at Negative Jobs Report to Close at New All-Time Highs
Somewhere in an alternative Universe, an employment report similar to Friday’s would have upset the markets, but not here, not Friday. Employment numbers fell short by almost 70%, which most would have thought would have been a sell signal on signs that economic activity was slowing. However, investors shrugged off April’s dismal job report on the hope that it will keep restrictive measures at the Fed at bay and closed at new all-time highs Friday. If this is not a decoupling, it suggests that the economy and Wall St. are not as correlated as they once seemed to have been.
In this blog post, make sure to check out the top 5 TrendSpider charts posted this week on social media; as well as the broad market charts into next week! If you missed Season 3 of The Stock Trading Pit, catch the recaps of every episode on our YouTube Channel.
The $SPY closed at $422.42 (+0.07%); a new all-time high. The sessions chart has price holding well above the swing high of last week, but stalling at the 2.618 Fibonacci level on the weekly which also intersects with the yet unviolated upper trend line.
The $QQQ closed at $334.56 (+o.12%). Although the price recovered somewhat on Friday, the sessions chart over the week seems less than bullish. Looking at the weekly, the upper outer Bollinger Band ™ is calling for a test, but three red weekly candles are posing a few questions in the opposite direction.