SPX, NDX Closed Lower after better-than-expected Jobs Report...WBA, DAL Very Positive EPS Reactions...CEG Leads NDX on Acquisition News...

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SPX -91.21, 5,827.  Opened lower following a better-than-expected Jobs Report of 256K new jobs vs. 157K expected.  A circumstance that is often referred to as “good news is bad news” due to the short-term selling reaction in the market.  Our view is that good economic growth is good for families, the economy, and the country.  However, retail traders should realize that amongst the thousands of institutional traders, there are a variety of short-term expectations that are traded with different short-term objectives.

Wells Fargo Investment Institute senior global market strategist Scott Wren was quoted as saying, “Good news for the economy but not for the markets, at least for now.  However, this unexpected gain relative to the consensus projection does not change our view that the labor market is likely to decelerate further in coming quarters.”

I continually point out in our iBullyBear Live Mentoring Sessions, traders should remember the reasons economist, strategist and other commentators speak of unexpected, in this case gain, is because the forecasters/consensus models misestimated.  The economy is the economy; therefore, it is the forecasters models of the economy that failed to accurately forecast the actual outcome.  The fault lies with the models, not the economy.  Ironically, a small percentage (but enough to create a short-term supply/demand imbalance) of institutions trade short-term based on a perception discrepancy they create rather than actual economic developments.

Breadth weakened significantly on Friday.  Sellers controlled the first and last two hours of trading on Friday.  We’ll look to Monday to see if it was a one-day reaction or signs of more selling to come.

The DJI, 41,938, closed -1.63% below short-term support and above three-month support. 

NDX -1.57%, closed below short-term support.

TSLA -0.20, -0.05%, traded in a range, closed slightly lower and formed a hammer.

Mega caps META, TSM rose and TSLA, GOOGL, MSFT, AMZN, BRK/B, AVGO, AAPL, NVDA fell on Friday. 

SPY down 9.00 at 580.49, 72.1 million shares, above average volume

VIX up 1.47 at 19.54,

VIX1D down 2.26 at 16.41,

QQQ down 8.08 at 507.19

CVX, WMT, HD, BA led the DJIA, 4 advancers, -14                

WBA, CEG, DAL, BG led the SPX, 67 advancers

CEG, FANG, ZS, AEP led the NDX, 13 advancers

Up: 

Down:  SPY, QQQ, DIA, IWM,

The SPY MFC green line turned down at 31.6 and is short-term bearish. -1.7.

One of eleven sectors wase higher on Friday, led by XLE. 

Uptrend sectors:   XLY, XLC, XLF, XLI, XLK, XLU,

Neutral sectors:  XLE,

Down trend sectors: XLRE, XLP, XLV, XLB,

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

3-month Intermediate Term Market Trend: Up

3-day Short Term Market Trend: Down

13 of 100 NDX stocks closed higher on Friday.

17 NDX stocks are above their 30 DMA:  MRVL, LULU, AVGO, GOOGL CEG, META, ARM, ASML, BKR, FANG, KLAC, AMAT, CDW, GEHC, MU, ISRG, AZN,

NDX Stocks to Watch on Monday:

Moving Above 30 DMA = 1 

AZN,

Moving Below 30 DMA = 12

ADI, AMZN, ANSS, CSCO, DXCM, EXC, IDXX, LRCX, NVDA, PDD, QCOM, ROST,

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