Good morning! After a great deal of congestion and concern over the past month, the market finally put in its first solid uptrend day since April 18th, at least in the S&P 500 and Dow Jones Industrial Average... The day began with a strong upside gap coming out of the premarket economic data. U.S. nonfarm payrolls grew by 138,000, coming in under expectations, while the unemployment rate remained at 4.7% as anticipated. This offered hope that the Fed will begin to ease rate hikes, although another move of +.25 is still expected from this week's upcoming FOMC meeting.

The dollar fell following Friday's data release while the market overall picked up steam. Advancers outpaced decliners 3 to 1 on the New York Stock Exchange and 19 to 11 on the Nasdaq. Among the leaders were brokers (+3.2%), biotechs (+3.2%), residential builders (+2.5%), utilities (+2.2%), and oil services (+1.7%). Volume was moderate.

It did not take long for the Nasdaq to show its relative weakness. Within 15 minute of the open it began to fall, pulling back into its 5 minute 20 sma and support from the highs of the prior afternoon before stalling. This support hit with the 10:15 ET reversal period. The Dow Jones Industrial Average once again had the most relative strength, basing at highs throughout this correction. As the three indices hit their 5 minute 20 sma, however, they all broke higher. The Dow led the way.

While the Dow and S&P 500 both broke to new multi-year highs, the Nasdaq had a more difficult time gaining strength. Its upside pace intraday was much more gradual than the other two indices and it was unable to even retest the morning highs before noon. As the market began to correct mid-day, the Nasdaq fell the hardest, coming back into the zone of morning lows at the 13:00 ET reversal period. This degree of retracement lent the index to yet another trading range on the 15 minute charts, much like the prior trading day.

Once the 13:00 ET reversal period hit the market again began to move higher. The Dow and S&P 500 again reached new intraday levels, climbing until nearly 15:00 ET. This upside move lasted approximately as long as the late morning rally before slowing. The last hour and 15 minutes of the day saw little excitement. Volume was light and a narrow trading range again persisted into the close. Overall I am expecting this upside to continue into Monday, but slow ahead of the upcoming Fed meeting.

Economic Reports and Events
May 08: -
May 09: Wholesale Inventories for Mar (10:00 am)
May 10: Crude Inventories 05/05 (10:30 am), FOMC policy statement (14:15 pm)
May 11: Business Inventories for Mar (8:30 am), Initial Claims 05/06 (8:30 am), Retail Sales for Apr (8:30 am), Retail Sales ex-auto for Apr (8:30 am)
May 12: Export Prices ex-ag. for Apr (8:30 am), Import Prices ex-oil for Apr (8:30 am), Trade Balance for Mar (8:30 am), Mich. Sentiment-Prel. for May (9:50 am

Earnings Announcements of Interest
Only stocks with an average daily volume of 500K+ are listed. List may not be complete so be sure to always check your stock's earnings date before holding a position overnight. (A) = Earnings after the close, (B) = Earnings before the open, (?) = Earnings time not specified at the time of this writing
May 08: ABP (B), ARXX (?), AVNX (?), BBD (?), BLKB (A), CSV (A), CCRT (A), EAGL (A), FLR (A), FTI (A), FTO (?), HW (B), HNT (?), HOC (B), IN (A), MYOG (?), OSIP (A), GOLD (02:00 am ET), SBAC (A), SONS (A), STO (2:30 am ET)
May 09: SIL (?), AZPN (A), ASYT (4:00 pm ET), BIDU (A), ITU (?), CELL (A), CVC (B), CSCO (?), DESC (A), DYN (B), ENTG (B), FCH (A), GTI (B), HSP (B), IDTI (A), LAMR (?), MTSN (A), MYL (A), NMTI (B), PGN (10:00 am ET), SAPE (A), SLE (?), SINA (A), TMTA (A), LCC (B), DIS (?), WGR (B), WFII (A)
May 10: WEL (?), RIO (?), DCEL (?), DQE (B), ENER (?), HJT (B), GSS (A), IVAN (?), MIR (?), MT (?)
May 11: AEM (A), BGO (A), DT (?), EXPE (A), JCP (?), KSS (?), PBY (A), UBB (?), URBN (06:00 am ET)
May 12: DRS (B), PBR (?)
Note: All economic numbers and earnings reports are in lines with those compiled by Yahoo Finance. Occasionally changes will occur that are made after the posting of this column.

Toni Hansen is President and Co-founder of the Bastiat Group, Inc., and runs the popular Trading From Main Street. She can be reached at Toni@tradingfrommainstreet.com.