Good thing Top Equity News’ isn’t one of those carnival-barking NFL handicapping services. Our Patriots pick didn’t work too well. And to be honest, TEN’s stock market prognostication was off the mark last week too.
We don’t think we are necessarily wrong, just a little early? Maybe Brady and Belichick win Super Bowl 47 and stocks hit the pause button this or next week?
After Friday’s magical Employment Situation report, the NASDAQ became a Runaway train never comin’ back, Runaway train tearin’ up the track! The index rolled on to an 11 year high off the J-O-B-S news.
But, before you get too far down the line, there was a little hocus-pocus in the unemployment results. The BLS seasonally adjusted 1.2 million people right out of the workforce. In fact, the labor participation rate fell to a 30 year low.
The good news is that the BLS magic pen is no secret to Wall Street. Traders put the NASDAQ in place to bypass multiple tops. To confirm a full-fledged breakout, TEN would like to see the index close above 2950ish.
Getting to our target will be no easy task. The NASDAQ has moved firmly above a 70 relative strength reading. Normally, 70 is a fairly reliable mile marker where a pause or drop in stock prices can be found.
It might not be right away, as the runaway freight train of momentum could continue pushing equities higher for another week or so, but not much more than that. Minus some unexpected mood-altering news, any sell-off is likely to be profit-taking only, not the beginning of a long-term correction.
If traders and computer programs trim a few dollars off the top, Top Equity would suggest buying the dip around NASDAQ 2750.
Stock Market Trends: That 70s Feeling – Again is an article from: 
