Bulls Looking to Recover

8:45am (EST)

The bears stopped the bulls recent momentum as they were able to pound the market early in the week before Friday’s big rebound to hold on for the weekly win. The major indexes were facing serious trouble before Friday’s non-farm payrolls report but rebounded sharply after hearing the good news.

Much of the economic news was uninspiring up until the report but was quickly forgotten after the Labor Department said the private sector added 268,000 jobs for the month. The government trimmed some fat by slicing 24,000 off the payroll but overall the economy added a total of 244,000 jobs last month. The past few months before April’s numbers had witnessed an increase of over 200,000 jobs added but the suit-and-ties had estimates for only 185,000 jobs to be in the mix. Like the weather forecaster, they got it wrong.

The Dow started the week at 12,810 and was right in the 12,800-13,000 resistance area we outlined in mid-February. The rally we predicted from last October 2010 did last right thru April 2011 and we were prepared for a pullback in May. The blue-chips stormed out of the gate on Monday after hearing the Osama Bin Laden news, racing to a high of 12,928, but finished flat for the session. There was a little downside pressure on Tuesday and by Thursday the index had traded to a low of 12,504 which was within spitting distance of own downside target of 12,500…

To read more on where we feel this market is headed and to get our latest trade recommendations, click here. We are on the verge of releasing 2 or 3 new trades over the next few days!

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Bulls Looking to Recover

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