Two Charts to look at on the Stock Indexes prior to Friday’s Unemployment figures:
YMM14 (Doe Index) 16.465 remains the high which was posted on New years Eve, just 3 months ago. After that , we had the February Swoon, followed by the bulls fighting back every bit of that 7% pull back.
Friday we look to be funneling into a real test of that old high. A settlement above that level would open the door for Dow 17,300.
A lot of the general public is still out of this market. As always, its going to take a big psychological target to bring them back. I don’t know if its 18K, or 20K but somewhere along the line, (not yet) we’ll have people who swore they would never own a stock after 2009, happily writing checks to double down again on the stock market trying to get their piece of that 8% historical average rate of return. Note the chart below:
There is a wall of resistance there on the charts at 14,465. Sell it, but be prepared to flip and go long in case we take off. Eventually, one this level is taken out, it should turn into good support.
Below look at the Broader S&P June future for comparison:
Looking at this chart