The market staged an impressive rebound last week and is looking to build on that move in early trade following G-20 commentary, overseas strength and Dollar Index declines leaving it back near its 52-wk low from Oct.
The market staged an impressive rebound last week and is looking to build on that move in early trade following G-20 commentary, overseas strength and Dollar Index declines leaving it back near its 52-wk low from Oct. The next near term resistance for the S&P above the Friday's high (1071) is at 1074/1076 (retracement of slide off Oct high/Fib extension/March-July trendline broken below last week) followed by the September peak at 1080.
Friday Summary: The mildly negative pre-market bias weakened following the jump in unemployment above the 10% level (10.2%) and the slightly larger than expected decline in payrolls (-190K vs. -175K). The indices set the low for the morning in the first five minutes of trade, however, and ran to new rebound/weekly highs shortly thereafter with traders citing upward revisions, gains in temp employment and improvement in the overall employment trend. Choppy, low volume and relatively confined action not far from the flat line dominated for the remainder of the session. Sector leadership came from: Airline +4.3%, Internet HHH +2.2%, Gold Miners GDX +1.9%, Casino +1.8%, Rail +1.7%, Healthcare +1.3%, Restaurant +1.2%, Retail RTH +1.2%, Biotech IBB +1.2%, Housing XHB +0.9%. Weakness was noted in: REITs IYR -1.5%, Solar TAN -1.4%, Disk Drive -1.4%, Coal -1.2%, Health Provider -1%, Oil Service OIH -0.7%, Refiners (SUN, ALJ, TSO, WNR, FTO, HOC) and Drillers (PDE, BHI, DO, SLB, NBR, WFT).
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