And they’re off! Anyone following the Wall Street Examiner Professional Edition Treasury updates showing the massive surge in Federal withholding taxes in January would not have been surprised by today’s jobs report, but most other traders apparently were, as the SPX vaults a dozen points on opening, following a similar surge in the futures at 8:30 when the jobs data was released.
As a result of this move the 2 day cycle projection is now around 1345. The 5 day cycle projection is 1351, but first things first, let’s see if they hit the 2 day cycle target. Channel resistance shows up right here at 1338, and then 1341. They would become support if cleared. On the slight chance that the rally stalls here and gives the finger, the first support would be at the 5 day cycle center line now at 1331.
Here’s the cash SPX chart (time stamp in lower right corner).
The SP futures (or ES electronic mini S&P) broke out at 8:30 AM NY time after trading in a narrow range since yesterday after the NY close. Europe gave it a slight bump, but that then fizzled until the payrolls data release. 2 and 5 day day cycle indicators, which had been neutral and borderline, surged in reaction to the news noise. The pop stopped dead at the convergence of 2 and 5 day cycle lines at 1333-34. There’s clearance above that to the next line of probable resistance at 1334. If they stall here, support is all the way down at the converged 2 and 5 day cycle center lines at 1332-33.
Here’s a look at the Spoos 30 minute bar chart (time stamp in upper right corner).
You can follow my real time intraday cycle updates with cycle price targets during the day at The Stool Pigeons Wire at Capitalstool.com.
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