BO Test Day 4 After Strong Jobs Report...Energy Leads Sectors...

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The SPX -68.28 opened lower following a Jobs Report of 390K vs 325K expected, moved lower during the first two hours of trading and moved sideways in a range and closed near its low of the day. 

The narrative, of investors sold on Friday because a strong economic report suggests the Fed might tighten more, infers a lack of understanding of why the Fed is raising rates.  The Fed is raising rates because inflation is high, not because they arbitrarily want to raise rates.  It is a good thing, not a bad thing, that the economy is strong and can withstand rising rates.  Even James Bullard said two weeks ago on May 20, it is a good thing that employees can find better paying work.

If it is true that investors sold because of a better-than-expected Jobs Report, why did SPY have its lowest volume since April 20?  Some traders say don’t confuse me with the facts, however, it may be the media narrative that provides no supporting facts for their subjective conclusions that creates the confusion.

The broad market SPY is in a horizontal bull flag after a horizontal BO last Friday, May 20.  Because the two-week trend is up, and the new support area held for the past four days, the trend is more likely to continue to the upside.

Keep your eye on the trend, support and resistance and momentum for better insight into what the institutions are doing.  S

SPY down 6.85 at 410.54, on 71.8 million shares, below average volume, down on lower volume.

VIX up .07 at 24.79

QQQ down 8.18 at 306.20

CAT, CVX, IBM, AMGN led the DJIA, 4 advancers, -19

PWR, NOC, ALK, COP led the SPX, 71 advancers

OKTA, SGEN, BIIB, TMUS led the NDX, 8 advancers

The two-year trend term is up.  The one-year trend down a little.

Up: 

Down: IWM, DIA, SPY, QQQ,

One of eleven sectors was higher on Friday, led by XLE, XLI and XLU.

Energy leaders:  COP, DINO, SLB, BKR

Industrials leaders:  PWR, NOC, ALK, CAT

Utilities leaders: NEE, AWK, NI, EVRG

Advancers weakened on Friday as decliners led 2,354 to 908 on the NYSE and led 3,010 led to 1,695 on the NASDAQ.

The SPY MFC green line is pointed up at 46.9 and is short-term bullish.  SPY opened lower, pulled back near Thursday’s open and tested last Friday’s BO for the fourth day in a row.

Uptrend sectors:  XLE, XLU, XLB,

Neutral sectors:  XLP, XLV,

Down trend sectors: XLRE, XLY, XLI, XLK, XLF, XLC,

The 6-month intermediate trend is down.  The ten-day trend is up.

3-month Intermediate Term Market Trend: Down

3-day Short Term Market Trend: Sideways

8 of 100 NDX stocks closed higher on Friday.

61 NDX stocks are above their 30 DMA:   MNST, GILD, EA, NTES, NXPI, XEL, ADI, SNPS, AMGN, AZN, EXC, MCHP, SIRI, TMUS, VRTX, AEP, AMD, CHTR, CMCSA, KLAC, LRCX, SGEN, ZM, ADBE, ADSK, AMAT, BIDU, BKNG, CDNS, DLTR, FISV, FTNT, LCID, PDD, TXN, ADP, ASML, CTAS, DOCU, INTU, JD, MAR, MRVL, MSFT, MTCH, NVDA, PCAR, QCOM, SBUX, AMZN, ATVI, CPRT, DDOG, FAST, GOOGL, HON, ODFL, ORLY, PAYX, PYPL, VRSN,

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 0

Moving Below 30 DMA = 10

ANSS, AVGO, CRWD, FB, INTC, MRNA, MU, PANW, SPLK, SWKS,

  

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