US stock futures point to a sharply higher open Friday, following an impressive jobs report this morning. The US economy gained 243,000 jobs last month, and the unemployment rate dipped to 8.3% from 8.5%. Most sectors in the economy added workers, another new and positive development in the monthly jobs report.
Markets have been in this new accelerated uptrend for almost 30 sessions. The floor got tested a few times this week and held, so the bulls set the table for today’s pre-market breakout. I will sell some longs into the excitement this morning because that’s what I do.
The S&P 500 ETF (SPY) needs to hold above $133.45 (1330-1333 on the S&P) to keep this gap and go in place. The door is now open for the bulls to knock on the 1345-1356. Last year’s high is 1370.
Market Participants have a lot to be thankful for since the October 4th reversal low. The market hasn’t violated many technical rules besides light volume, which has been the norm for three years. Markets started acting even better after December 20th gap and Go.
Take trades, manage your size and know your time frame.
Disclosures: Scott Redler is long SPY, OIH, WMT, LULU, VMW, AAPL, AIG, JPM, SLB, DNDN calls, and VXX. Short DIA.