EB Daily Market Report

Dear Members.

Monthly employment numbers came out this morning, blowing away forecasts and resulting in higher equity prices.

The move higher comes in spite of the realization that the likelihood of rapid interest rate cuts by the Fed have been reduced significantly. This can be seen by the spike in Treasury yields which aren't likely to benefit consumers, i.e., a rise in mortgage rates.

Nonetheless, the bulls will point to a solid economy which they ultimately believe will benefit stocks. But as Tom Bowley pointed out yesterday there continues to be some signals that the market remains vulnerable as we move deeper into the month of October.

The bulls will continue to aim for higher prices which would include a move in the S&P above the most recent high of 5767. To the downside the first key level of technical support is at 5675.

Wishing everyone a restful weekend!

At your service,

John Hopkins