A strong jobs report on Friday sent the market rocketing, with the NASDAQ Composite Index gapping on a breakout to all-time highs. Surprisingly, volume was not rip-roaringly higher, coming in at less than 1% higher than Thursday’s levels. But a breakout is a breakout, and if it comes on even slightly higher and above-average volume, then it remains a bullish move, end of story.
In my Wednesday mid-week report I noted that, “The S&P 500 Index, along with the Dow, remains below its 50-dma but is forming a short flag formation that may be setting the index up to retake its 50-dma. If the final signing of steel and aluminum tariffs tomorrow shows a number of ‘carve-outs’ and exemptions, thus proving to be less onerous on consumers of steel, then the index could easily pop back above the 50-dma.”
That is precisely what happened on Friday as the S&P 500 Index gapped up through its 50-dma and never looked back on higher but below-average volume. For now, this is exact the move I was looking for, and the index posted its highest closing high since the February 9th lows.
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