Good morning! The market accomplished very little in Friday's session. A moderate upside move took place in the premarket following the 8:30 am ET jobs data. The economy added 111,000 jobs in January, less than the 170,000 that economists had been anticipating. Nevertheless, the unemployment rate rose to 4.6% in December, while it had been expected to remain unchanged at 4.5%. Meanwhile, hourly earnings rose 0.2% in January, less than the 0.3% the market was looking for. This helped to ease inflation concerns somewhat, but had little real impact on the day's activity. Within only a few minutes of the open the market had taken back the meager gains and closed the upside gap.

This early hint at increased volatility held throughout the session. As I mentioned heading into the day, the indices were fairly extended on the 120 minute time frame following Wednesday's post-Fed rally and the continuation into Thursday morning. The market used the anticipation of an upcoming weekend and light data week next week to correct. The range remained narrow after the indices bounced out of the 10:00 factory data. They spiked back into earlier highs, breaking them slightly in the S&P 500 and Nasdaq Composite, but the range established within the first hour of the trading day held for the rest of the session.

The result of Friday's trading was a mixed close with a loss of 20.19 points in the Dow ($INDU), a gain of 2.45 points in the S&P 500 ($SPX) and a gain of 7.50 points in the Nasdaq Composite ($COMPX). Among the top performing sectors were the Dow transports, software, semiconductors, and biotechnology. Some of the best stocks on the day were CA, BHI, D, SPF, HOV, ISRG, ZRAN, WEBX, and CERN. The metal miners, on the other hand, such as ABX and GG closed lower. AMZN, AVID, MENT, SNIC and DIGE also had a difficult time.







I am a bit torn heading into Monday. I have not done much in the market over the past two weeks due to being out sick, but it's looking like the divergence that has taken place on a lot of the intraday charts recently is also holding on the larger intraday and daily time frames. The S&P 500 and the Dow Jones Ind. Ave. still appear overbought on the 120-minute charts, acting as if they want to see further corrective action into next week, while the Nasdaq is actually basing at 120-minute highs, forming the handle of a possible cup with handle on that time frame. The pace on the upside on the smaller time frames intraday also has not yet turned over that much other than in the Dow, so that also leaves more room for it to push against highs again, albeit not with the same momentum as earlier this past week.

Economic Reports and Events This Week
Monday: ISM Services for Jan. (10:00 am)
Tuesday: -
Wednesday: Productivity - Prel. for Q4 (8:30 am), Crude Inventories 2/2 (10:30 am), Consumer Credit for Dec. (3:00 pm)
Thursday: Initial Claims 2/3 (8:30 am), Wholesale Inventories for Dec. (10:00 am)
Friday: -

Key Earnings Announcements This Week
Monday: ATRS, CTSH, HERO, HUM, IPS,OSTK, PMI, APC, BLKB, EW, IKAN, LVS, QSII, RCII, SOHU, TZIX, and WMS
Tuesday: ADP, RATE, ELNK, IACI, ISE, LFUS, NOOF, TYC, WWY, ACTS, CELL, BOBJ, CAKE, CSCO, XRAY, WIRE, GCOM, IVAC, RENT, TWTC, and TZOO
Wednesday: ARXT, DTV, NRGY, ICE, MEDI, NSW.A, OSIS, SNWL, AKAM, ACL, ROCK, MOGN, PACR, and DIS
Thursday: AUO, CSK, CXW, DO, ESRX, FLIR, RAIL, GCA, LCLT, MGAM, PMTI, PENN, PEP, Q, RAI, TRB, WMI, KAR, BMC, BRCM, CSTR, DRIV, DIVX, DRRX, EQ, ITMN, LPNT, NAPS, NEW, PNRA, PWAV, SIMG, SPRT, and VSTA
Friday: ALU, CVH, MA, NNI, QMED, WY, and WLSC
Note: All economic numbers and earnings reports are in lines with those compiled by Yahoo Finance and Briefing.com. Occasionally changes will occur that are made after the posting of this column. This list is not a complete list of earnings, so always double check your positions!

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.