The Closing Look
Stocks opened lower and closed higher on Thursday as investors digested a slew of data. Overnight, Japan’s stock market fell over 2% which put pressure on global equities. Before the open, The European Central Bank (ECB) President Mario Draghi said inflation rates will likely stay low or negative in the near future as global growth remains sluggish. Separately, OPEC concluded its latest meeting, kept their policy unchanged, and did not place an output ceiling. Crude oil initially fell on the news but edged higher throughout the session. In the U.S., ADP said private employers added +173,000 new jobs in May which almost matched estimates for +175,000 new jobs. The April report was revised up to 166,000 from 156,000.
Gary’s Thoughts: Open down…finish at highs of day. Broad market good! Tomoorow, fake job’s number! Market feels like it wants topside…but never jump the gun!
what did you think of the job’s number? Do you believe they are faking 38,000 jobs that it is actually much worse?
The plain and dirty fact is this…..
This market is testing extended resistance, we are over bought .
If we rally higher, it is off long extended legs. I’ll stay out of that one.
What we really need, is a pull back here, and I think we will get one.
I have two indicators which mate other; they are telling me we could get a pull back, but it will be a small one,, it will be just an over bought relief pull back, then a base. Then I watch for a change,, if my signals remain bullish at the support base, we could break out of range and go higher. ( No June fed rate hike ? )
For now, my bet is a pull back, but only a small one.
I am short this market.