The indices have met with remarkably little resistance since early September. This could mean that the markets are vulnerable to a coordinated assault by the bears, perhaps in conjunction with a further move up in the energy sector.
Unless geopolitical concerns move to center stage, the remarkably positive consensus view of the underlying macro-economy should keep a firm bid under the market at least until the elections are behind us.
The action in the broad market indices over the last few sessions points to procrastination and hesitation, but also apparent is the reticence of the small caps to seize any kind of leadership role.
Although the equity indices were largely unmoved by the employment data, there was a pronounced slump in Treasury bond prices across the yield spectrum.
The release of key statistics today carries the possibility of triggering a re-appraisal of underlying economic conditions but, in support of the recent advances, many individual charts that show recent breakouts are being validated by continuations and extension patterns.
Despite some evidence that economic activity is slowing more acutely than current expectations, the half-empty/half-full dichotomy was definitely resolved in favor of the bulls yesterday.
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