Following Monday’s drop past serious support levels, it would have been hard to bet a Fifty on the bulls pulling a hat-trick going into Tuesday’s action. Especially midday, after the market hit bear market territory – then turned on a dime. We mentioned in our afternoon update that day the market could get a “dead cat bounce” off the lows and it hasn’t stopped as the bulls cleared key resistance levels which were prior support.
The Dow gained 183 points, or 1.7%, to close at 11,123. The index challenged the 11,000 level for much of the day before zooming in the final hour of trading to end comfortably above resistance. This area will now act as short-term support followed by 10,800.
The S&P jumped 21 points, or 1.8%, and settled at 1,165. The index did test a low of 1,135 but managed a close above 1,150 which was huge. Meanwhile, the Nasdaq popped 46 points, or 1.9%, to end at 2,506. Tech’s move above 2,500 was impressive.
Of course, this morning is all about the jobs numbers so let’s go over them.
The Nonfarm Payroll report came in at +103,000 while the Unemployment Rate posted a 9.1% reading.
Futures were slightly lower ahead of the report but are now positive: Dow (+82); S&P (+8); Nasdaq (+5). Subscribers, check the Members Area for the updates.