Analysis of Market Summary

Report from Mohamed Arif:
With the help of

After the Monday dump lower stocks fought back all week, rising to next resistance at the bottom of the November/December lateral range. It stalled at that point, but it was just waiting on the jobs report to either send it higher or choke off the rally. As it turns out the market pretty much got what it wanted when jobs came in at 97K (100K expected) with an upward revision to December and January. Lower yet higher. Weaker, but stronger as well. In a market still pondering the Fed's next move the dichotomy was nirvana-like.

The overseas markets were lower, but unlike the prior sessions when the US financial markets deferred to foreign direction, US stock futures surged on the jobs report, running 10 to 15 points above fair value. Looked promising, looked as if the jobs report was the juice to continue the rebound move and perhaps deliver a follow through to the Tuesday reversal.

Of course you always have to view a very strong open with skepticism, and the fact that the market has started a correction underlines the need for caution. On top of that the market spent the week rebounding from the spanking it took the prior week, a low volume rebound that indicated fewer and fewer upside participants. With the correction you knew the sellers were going to take a shot at the early bounce. It was just a matter of time.