The stock market remains exceptionally strong. Once again, the latest pullback was another strong buying opportunity. The Dow Jones Industrial Average, Nasdaq Composite, and benchmark S&P 500 are all back above near-term support and, once again, flirting with new highs. This was another shallow/healthy pullback in both size (small percent decline) and scope (short in duration). Meanwhile, the two lagging areas: The Transports and the small-cap Russell 2000 both pulled back and found support near their respective longer term 200 DMA lines. Now they are flirting with their 50 DMA lines. When you step back and look at the bigger trend, the market remains exceptionally strong. Remember, in a very strong bull market (present market included), weakness should be bought, not sold. Going forward, August’s low is near term support and the bulls remain in clear control until that level is broken.
Thur & Fri Action:
Stocks rallied on Thursday as the narrative shifted in D.C. to a tax cut. Chicago PMI came in at 58.9, slightly higher than the average estimate of missing estimates of 58.6. Meanwhile, Pending Home Sales fell by -0.8%, missing estimates for again of +0.4%. Before Friday’s open, the Labor Department said, U.S. employers added 156,000 new jobs in August, missing estimates for 180,000. Meanwhile, unemployment rate came in at 4.4%, missing estimates for 4.3%.
Market Outlook: Bulls Are Back In Control
The bulls are back in control and the market remains very strong. As always, keep your losses small and never argue with the tape. Get Our Free e-Book: Learn How To Buy Leading Stocks…EARLY. Get It Here…