Thursday, January 8, 2009

TODAY'S ACTION





We have the big one tomorrow, and it won't be pretty. Last month's reading was -533K lost, but this time it's -500K with a range of -750K to -300K. Whoever thinks we lost only 300K jobs is living in a cave. In addition, unemployment (currently at 6.7%) is expected to be at 7% with a range of 6.8% to 7.1%. In each of these cases, the Street expects both numbers to come in at the higher end. I know I do.


Let me remind you folks that real & total unemployment is at 12.5%, the highest since 1994 (BLS doesn't allow me to go beyond that). Don't let the 6.7% foll you.



We formed some possible reversal signals in the broad market today. The DJIA and SPX both formed hammers while the COMP formed a bullish piercing pattern. Both the DJIA and SPX bounced off their 50-day MA and the COMP bounced off it's 20-day MA. In addition, these bounces keep the uptrends in tact. Keep in mind that they all have the 20, 30 & 50-day MA's right below their 50% retracement level. Be aware of all the support, resistance, and trend lines before you freak out tomorrow.

SPX 5-day

SPX 10-day

SPX 40-day

SPX 4-month

Stable Spikers (multi-day)


Don't forget to try the Free Trend Analysis. It's FREE, so give it a shot!

3 comments:

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Anonymous said...

Hi FWLT above its 50 day, a buy for a trade (obama coronation) sayonara