S&P500 Recap

S&P futures are down over a percent this morning due to the PIIG worries, today in particular Italy or so they say. As for Friday'se recap, it could have been far worse than what we ended up seeing but looks like a follow through day today for the bears, will remove the significance of that hammer print.

On Friday we had an awful employment number and that dashed the naive hopes of a recovering economy. The Nonfarm payrolls rose only 18,000, the weakest reading since September, according to the Labor Department, well below economists' expectations for a 90,000 rise. The unemployment rate climbed to 9.2 percent, the highest since December, from 9.1 percent in May. The government also revised April and May payrolls to show 44,000 fewer jobs created than previously reported. The private sector added 57,000, accounting for all the jobs created, with government employment shrinking 39,000 because of fiscal problems at local and state governments.

The Friday session opened with a large gap lower and continued lower another ten points to put the low of the day on the chart at 11:15 am. Then the market found some buyers keeping a bid under things and a gentle rally followed which recovered about six points before the final half hour of the session saw a burst of buying as the index surged four more points to close at the high of the day.

For the SPX Index there were 73 components advancing and 399 components declining. On the NYSE 3,119 issues were traded with 900 advancing issues and 2,104 retreating issues, a ratio of 2.34 to one declining. There were 57 new highs and 15 new lows. The five day moving average of New Highs is 169 while the five day moving average of New Lows is 9 and the ten day moving average of Net Advancing is 755. The Net Advancing data indicates a bullish trend.

Friday’s volume was lower than Thursday's volume. The intraday volume pattern is difficult to discern but volume did tail off late in the day. The Breadth Indicators are much more mixed after Friday's action as the M O continues to be overbought and MSI is Bullish