Week-In-Review: Big Week For Stocks
The market rallied last week even as the number of Covid-19 cases continued to spike higher. Additionally, it was very encouraging to see the bulls show up and defend the 50 DMA line which is the level of support I have outlined several times for you in recent weeks. Going forward, as long that level holds, the bulls are in clear control. Looking forward, we are entering earnings season over the next few weeks. As you can see, it’s never a dull moment on Wall Street.
Thursday & Friday Action:
Stocks rallied on Thursday after the jobs report beat estimates. The government said a record 4.8 million jobs were created in June which easily beat the Street’s estimate for 2.9 million jobs. Meanwhile, the unemployment rate fell to 11.1% from 13.3% in May. That also beat estimates because economists were expecting a rate of 12.4%, according to Dow Jones. The market was closed on Friday for July 4th.
Market Outlook: Flood The System With Liquidity
Global governments and global central banks stepped in with massive rate cuts and other “aid” packages to help “stimulate” both Main Street and Wall Street. So far, it is working as intended. As long as March’s lows hold, the market will likely move sideways to higher. On the other hand, if March’s lows are breached, then look out below. As always, keep your losses small and never argue with the tape.