Exactly What We Need To Wrap Up This Correction

The
market seems to be in a holding pattern as two major economic
events unfold in the near-term. 

 

 

Tomorrow’s unemployment
report and job data have captured investors’ attention. Nonfarm Payrolls are
estimated to be around 123,000 while the unemployment rate is expected to come
in around 5.6%. Secondly, earnings season is about to unfold over the next
couple of weeks with most major companies reporting 1^st quarter
results.

 

At this point, we have seen
strong action out of growth stocks and sound accumulation out of the
indexes. The S&P 400 and 600 have re-gained their 50-day moving averages with
ease while the larger indexes (Dow, S&P 500 and Nasdaq) are still trading
below the 50-day MA’s. 

 

^next^

Growth stocks have come under
accumulation and we have continued to see positive moves higher.
Research in Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating)  has managed to climb back
above its 50-day moving average.

 

 

 

Names like
(
APPX |
Quote |
Chart |
News |
PowerRating),
(
LEND |
Quote |
Chart |
News |
PowerRating),

(
YHOO |
Quote |
Chart |
News |
PowerRating) and
(
GMR |
Quote |
Chart |
News |
PowerRating) have all broken out and traded higher. 

 

  

Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating), Mobile Telesystems

(
MBT |
Quote |
Chart |
News |
PowerRating) and other various companies have continued their ascents and strong
accumulative action. 

 

 

One thing that is important
for this market to push higher and wrap up the correction we have been locked
in is strong volume
into rallies and weak volume into declines. Another
Bull Market trait is when the indexes open at their lows and close at the
daily highs.  The last two trading days have shown this.

 

Have a great weekend!

Tim Truebenbach

timt@tradingmarkets.com