Submitted by Mark Hanna
Courtesy of MarketMontage. View original post here.
One of the genuinely decent economic reports of the past 6 weeks this morning as April’s data beat expectations AND prior months had significant revisions up. The participation rate was flat (at very low rates) but the unemployment rate did tick down. Average workweek ticking down 0.2 is the major wart today but most only read the headlines and don’t worry about details so just a wart for economists not the market. Anyhow we have breached to new highs and a resistance top that has been here for two weeks on the S&P 500 in the premarket, and will be back to overbought in the near term assuming the premorning pop holds. It is good to see this data point is diverging from a lot of the others which has weakened considerably – hopefully not something that gets revised down in future months. ISM Services at 10.
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