Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
The S&P 500 is bouncing well off that new/old support which had held since November (see previous post), with the exception of the one break middle of last month. This is positive in the fact it reinforces it as a useful line to follow. Markets were in decent form this morning but then a news report that some ECB members were wanting “bolder” measures created a new leg up – essentially it’s all about central bankers right now and until that changes it is status quo. Yesterday’s bad economic data is already an afterthought. Tomorrow we have employment and ISM Non manufacturing – the weekly claims figures have actually improved quite nicely so it is a bit of a surprise that the monthly data has not done better.
But corporate profits are based on lean corporations with productive work bases – not hiring a slew of workers…especially as revenue growth is a major struggle. So what is good for Wall Street isn’t necessarily going to be seen in an employment report.
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