Strong Jobs Report Boosts Market
Fed rate cut is expected - Tech also fueled the market - Semiconductors showing weaknesses - Key indicators to watch before the Santa Rally season.
It was a solid bounce from the October’s report, suggesting a healthy job market that was affected by hurricanes and the strike that Boeing suffered from its machinist workforce. CPI news and interest rate decision on the horizon.
The November jobs report painted a positive picture of the U.S. labor market, surpassing expectations with a robust gain of 227,000 jobs. This growth was broad-based, with contributions from multiple sectors. Healthcare and social assistance continued to be a major driver of job growth, adding 72,300 positions. Leisure and hospitality also saw significant gains, with 53,000 new jobs. Manufacturing and professional and business services rebounded strongly after October's setbacks, adding 22,000 and 26,000 jobs, respectively.
A solid jobs report, seasonality in favor of the market, and the prospects of rate cuts suggest more upside is coming; CPI is the main macro economic report to watch next week. Let’s study what the charts say.
From last week, SPX surpassed the immediate bullish target, and slowed its pace few points below a significant annual resistance; TLT continued moving up as expected; NDX stayed above the key weekly level and flipped the $21,442 target into support; and GOOG, AAPL, META, and AMZN are on their path to the bullish targets mentioned (META and AMZN extremely close and accurate). Tech was the hero of the week. On the bearish side, NAT GAS, IWM and breadth indicators fell as expected.
Bitcoin presented an intra-week pullback and continued northbound as TSLA, these two suggested consolidation brewing, but they stayed above the key S/R levels mentioned last weekend, so there was no confirmation of the setups, as mentioned, the S/R levels are specific metrics that protect us from fake signals.
This is not a market to short, despite several warning signs which by the way welcomed two new technical indicators to the group of yellow (orange?) flags. Euphorias can stay for a couple of weeks before a healthy pullback comes.
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