Classic Response To A Dismal Number, But...

Yes, the market sold off on the dismal jobs report today. The Dow was down 146.70 points and heading towards my conservative Jan lows of 11700 demarkated by the intraday lows of 22 and 23 Jan. Jobs report truly disappointed today as it turns in a second consecutive month of jobs contraction. Non-farm payroll lost 63,000 jobs when analysts have estimated a gain of 30,000 jobs! Now, thats pretty far off the mark. In fact, January's already dismal number has also been revised DOWNWARDS! With the payroll number at its lowest level since 2003, is the end of the tunnel really near? Even though there was fire everywhere in the house today, I noticed a percularity... I actually saw signs that the bulls are coming back to life again! Markets did not go into a nose dive on the opening but rather came under heavy support by the bulls, going into positive territory for a significant amount of time before getting beaten down again. Yes, there were more bears than bulls today especially ahead of the weekend BUT, the few bullish heroes today proved that bulls are far from dead... in fact, they might be coming back to life! In fact, the last time jobs were this dismal in March of 2003, the market actually went into a long 3 months rally less than half a month after the release! Yes, truly as the old adage says, "It is darkest just before dawn". I did not see the strong volume surge today that will suggest a capitulation and I think the Dow is going to visit my conservative Jan lows afterall but I am secretly optimistic that the bottom may be near... if the conservative Jan Lows hold out...


Dow Technical Chart By BEST FREE SOFTWARE, TC2007! Get It Now!