Friday Morning Update

We’ve had an interesting, and so far bullish week to start September. The chart patterns are consistent with a short term reversal of the bearish summer trend, which we called last weekend. Volume, however, has been extremely light and really dried up yesterday as the SPX advanced again and held the 50 day. Today we have the highly anticipated employment data.

This does yet look like a new bull market, though I won’t say it’s not going to happen. We’re still, as one CNBC guest commentator put it, day trading the economic news. Today’s news will fill in some more parts of the puzzle, but I don’t really expect anything dramatic. It’s been a sideways, range-bound stock market since the May “mini-crash.” Ditto for oil. Adept traders may have made a few small gains, but longer term positions have been pretty close to level. Let’s see what today’s trading brings.

(click on chart to expand)

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