Not Much Follow Through Buying

Market Action:
The stock market didn’t do much in the way of follow through from Tuesday’s big upside move.  Given the condition of the market, and by that we mean how oversold it is, the Tuesday fireworks could very easily have carried over into Wednesday, something we kind of expected.  Of course, there is always Thursday.  

Opinion/Analysis:
With the market trying to rally out of the big drop over the past couple of weeks, there is really little we can do but wait and watch.  As the market will decide in its own time when it wants to continue lower, we are obliged to try to figure out when that will be.  

Right now, even after the huge rally on Tuesday, the market is still oversold and needs either some time or some more upside to alleviate that situation.  As we mentioned in past posts, the market is weak and heavy and could drop through the floor at any moment, but we still think there is some upside correction left to go.  How much?  Well, corrective moves are much more difficult to predict but we have a good notion that 12,500 is in the area we are looking for in the Dow.

In the News:
The news item we are interested in is the Friday jobs’ report.  The economy hasn’t put up that many new jobs over the past few years but it does manage to chug along with 100K to 150K new jobs per month.  The forecast for Friday is for 100K new jobs to have been created in February.  This news point could be near the top of the corrective wave so we are going to be monitoring it heavily.  And, what little we will know on Thursday evening we will share with you, too.

Dow Industrials:  12,192.45  -15.14
VIX: 15.24
HUI:  329.34
QQQQ:  42.68
RYVNX:   17.80
RYAIX:  22.02
RYCWX:  37.32
TLT:  90.43
BEGBX:  13.88