Midday Update for 7/5/2013 

Opening Pop Fades at 50-Day MA’s 

12:30pm (EST)

Futures were showing a strong open throughout the night and into this morning’s Nonfarm Payrolls report which blew away expectations as 195,000 were added for the month of June.  Better yet, April and May’s numbers were revised upward by 70,000 that pushed their monthly levels within spitting distance of 200,000.

The two things we mentioned this morning is the taper talk would begin as soon as the numbers were released and the market could wind up having a flat day.  The “good” jobs news being spun have economists predicting a taper cut in September.  The 10-year treasury note jumped 20 basis points to nearly 2.7% on the Nonfarm Payrolls numbers and was a bad omen for the bulls.

Futures started to lose steam and were cut in half before the opening bell but the bulls got off to a nice start and made another run at the 50-day moving averages.  However, the jump in the 10-year and the opening pop and drop was not a good technical setup to break threw the 50-day MA’s.

We expected a slightly bullish week and a continued chop in the indexes ahead of 2Q earnings season that begins next week.  The bulls are on track for their second-straight weekly win but if they cannot clear near-term resistance there could be trouble ahead.

The Dow is currently up 96 points to 15,085 while the S&P 500 is higher by 10 points to 1,625.  The Nasdaq is advancing 23 points to 3,466 and the Russell 2000 is up 6 points to 996.  These are bullish closing levels but the bears still have another half session to do some damage.  We have some last minute updates on our current trades ahead of the weekend so let’s go check the tape.

We will be back Sunday night with the Weekly Wrap and on Monday morning with the Daily.  Until then, have a great weekend everyyone!