Market Lab Report - Premarket Pulse 5/6/16
Major averages closed roughly flat to lower yesterday on mixed volume with the S&P 500 sitting at its 10-week moving line.
Futures tumbled on the jobs report which came in at 160,000 new jobs created vs.the estimated 203,000. Unemployment remained steady at 5%. Treasury yields fell and gold rose on the news.
Even with these manipulated statistics, the economy in the US has not yet turned a corner. This suggests the Fed will have to put off any rate hikes. So while futures fell on the news, the increased likelihood of continued easy money could put a floor under any correction, thus making it less meaningful. But that has been the way of markets since QE began in earnest in 2009. Still, 2015 and 2016 have suggested the loss of confidence in central banks and governments is accelerating.
Tesla Motors (TSLA) motors undercut its 215 low of March 24th, which could be considered a short-term cover point. Otherwise the 200-day line would remain in force as a maximum upside trailing stop.
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