The jobs report surprised to the upside. Everybody except us, that is. I had warned back in early February that the real time withholding tax data was skyrocketing. That meant more jobs than Wall Street economists were expecting. That pattern continued through last week.
So now, the few shorts that are left are covering. The institutional sit-on-it-and-rotate guys are rotating. They’re selling Treasuries again, surprise surprise, as we predicted earlier. And they’re buying stonks.
Here’s the 30 minute bar chart in the wake of the jobs report. Stonks are headed for resistance at 3800. The 2-3 day cycle projection is 3810-20. If they get there, that would break the downtrend. OR at least this version of it. Channel boundaries have been made to be broken in this broken, illiquid, market in crisis.