The market needed to correct a bit and the jobs news was a good excuse to do so. The issue now is whether it finds support and turns back up, or does this turn into a failed bounce and a retest of the pre-European Union Summit lows of 1330 or so.
As long as the S&P 500 stays above the 50-day simple moving average, which is around 1340, I'm inclined to lean bullish. That doesn't mean I'm rushing in to load up, but I'll be looking for long trades.
I've made a couple of buys this morning. Facebook (FB) seems to be attracting the hot money and is working hard to turn higher. Golar LNG (GLNG) has some news and is looking to turn higher but still has resistance at the 200-day average. Smith & Wesson (SWHC), my Stock of the Week, has pulled back but has some positive analyst comments and a good target.
I'm not taking any aggressive positions but I am inclined to nibble. I believe the market may have further downside in the near term but I'll be looking for support to kick in and dip-buyers to show up.
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It is premature to declare that the worst is over, but the intensity of the selling will go a long way toward helping a bottom to form.
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