In our weekend piece "The Good, the Bad, & the Ugly", we pointed to S&P 1,400 as a key technical resistance for the bulls to celebrate, and after the Employment Report, 1,400 looks like the new support. The biggest hammer of the month "The Employment Report"
came in much better than expected, minus 20,000 jobs, or 5% nation wide unemployment, that's all Wall Street needs to go higher, congratulations!
Here's what we wrote for you last Saturday night:
The S&P Index climbing above 1,400 will signal resounding bullishness, so we feel things are not as gloomy as perma-bears would have you believe. Therefore, the week ahead will be a testament to the resolve of the U.S. stock market and foretell positive economic conditions, sending the bears into hibernation as the S&P closes above 1,400 on Friday May 2nd. Statistics show the U.S. economy remains the largest of any other country, so the rest of the world’s investors are watching and hoping the credit crisis finally be laid to rest.
Continue to obey the 11 Commandments and don't forget to come back Saturday night for our forward-looking psychology piece. ENJOY THE RALLY! CONGRATULATIONS TO THOSE WHO VOTED S&P ABOVE 1,400, you are winners!
The Psychology of the Call team.