Is the market correction over?
Taking a look at this video gives you a better idea. SPX made a splashing red candle on February 3 and negated all the work on the left hand side of the charts for months and pierced through some major technicals. Next few days it meandered around and made a U shaped turn which indicated that some kind of bottom may be in place. Only next few days of trading can confirm that. This was a 5% correction which was widely expected by traders
Friday’s unemployment report didn’t encourage the market much. Last two job reports have been non-spectacular. Merely 113,000 jobs were added and December job reports were not revised upward. However the GDP has been strong at the clip of 3% last quarter. Those numbers and the manufacturing and retail side are showing signs of improving economy. The unemployment rate dipped to 6.6 % in January and has much improved over the 9.9% rate in 2008 and 2009. If this trend continues we can see 5.5% unemployment rate sometime next year in 2015. That is a long ways from 2007 almost 8 years in recovery.
Major stocks are all showing bullish biases. The charts are bottoming out. GOOG for example shot back and may take out its previous highs this week or next. CMG had great earnings and now hanging there at 545 levels forming a base. AAPL did suffer when the report came out but the company announced it is buying back it’s own shares, which surprised many people but it alos gave a shot in the arm. AAPL seems like is trying to reach towards it 50 day line at 544. We shall see how this stock trades on buyback bullish trade.
The overall picture of the market as per the charts has improved and there is a bullish bias. Unless the shorts start hammering this market at the 50 day line it will resume its stair stepping climb once again. This is for this week though.