Bears Have The Ball
Friday’s action in the stock market saw the bears make a stand at precisely the moment they had to before the S&P 500 headed to new highs. Funny how that sometimes works. You can see on the far right side of the chart below how the bears have rejected the bulls with red at 6130, 6120 and now at 6100. That is three times with a lower level each time, meaning the bears are getting more aggressive.
The behavior by the bears also gives us a line in the sand that will show a change in market character if and when the bulls can exceed those levels on the way back up. Today should be interesting as an early bounce is indicated. If it sticks is the big question.
On Friday we also learned that the number of jobs created in January was 143,000 which was a bit less than expected. The unemployment rate fell a touch to 4%. Wages were the surprise as they came in hotter than expected, fueling comments about stickier inflation. As I have written, I think inflation falls during the second half of the year towards 2% as the economy cools.
On Friday we sold XRT and some MQQQ.
