Investors Look Past Job Data
Investors look past an extremely optimistic ADP employment report today as the Dow moves sideways, losing 39 points.
The sense that the market is short term overbought and that much of these great numbers have already been priced in so far is getting overwhelming. Indeed, the Dow is way overdue a pull back to the 8750 level marked by its 50 days moving average before it can move higher healthily. The longer the wait, the stronger the pullback. The bulls are keeping it high so far, anticipating a surprise on the Job report this Friday (See stock market calendar). Consensus is looking for a higher unemployment rate of 9.7% while investors are speculating on it being unchanged as a sign of the bottom. The Dow continues to be in an all out bull trend but at a level which I would not personally be in newly long.
The sense that the market is short term overbought and that much of these great numbers have already been priced in so far is getting overwhelming. Indeed, the Dow is way overdue a pull back to the 8750 level marked by its 50 days moving average before it can move higher healthily. The longer the wait, the stronger the pullback. The bulls are keeping it high so far, anticipating a surprise on the Job report this Friday (See stock market calendar). Consensus is looking for a higher unemployment rate of 9.7% while investors are speculating on it being unchanged as a sign of the bottom. The Dow continues to be in an all out bull trend but at a level which I would not personally be in newly long.
posted by Jason Ng at 7:59 PM
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