Sunday, October 7, 2007

Last Week's Markets

Last week's chart is very straightforward. The market rallied on Monday, consolidated on Tuesday through Thursday and rallied on Friday's jobs report. Not much more than that.

The jobs report was a very important piece of information for the bulls. Most people (myself included) think the previous jobs report was a primary reason for the Fed's rate cut. However, Friday's report not only revised the previous 4000 loss to a gain but came in right with the market's overall expectations. That really put a damper on the bears arguments about the economy.

The daily chart shows a market that is just below record highs. The 10 and 20 day SMAs are all moving higher and the 50 day SMA is turning the corner higher as well. The shorter SMAs are above the longer SMAs and prices are above all SMAs as well. This chart says buy me.