The stock market has staged a huge reversal day after some of the most bullish news that one could receive. The government jobs report was almost positive and the revisions were all much better. Then the factory order report was much better than expected. Many that are not traders would think the market would be moving to the moon and we have a huge reversal underway. It’s is almost comical when the market is falling as it did at 2:30 pm ET to get positive comments from Fed Bank officials. This news remark did give the SPY a 2:30 pm pop. Wow, the government and bank officials are really watching every tick in this market. Makes me wonder.
Often on Friday’s the market we rarely see the market have a big sell off point wise. Today there is no exception. The market is basically flat on the day even though we have a near 200 point reversal in place. However, the public who is not trading the market will think the market finished flat or slightly positive when they watch the evening news. We believe the ‘Friday Effect’ occurs so that there is no panic and the Asian markets dont get spooked over the weekend. Remember the Asian markets open up on Sunday evening if you live in North America. Look at the chart below. It makes us believe the Fed and the government are watching the technicals.
