It obviously turned out to be a good day to be long on Friday. I’m glad that I didn’t initiate any shorts on Thursday. What happened on Friday illustrates why I don’t like initiating trades right before market-moving events — although the jobs report was worse than expected the market rallied. One could come up with several reasons why that was the case, but I think that a lot of it was people putting money to work now that so many of the events I talked about the other day were out of the way without any disasters.
The bulls should be encouraged by the S&P 500 and Dow being able to close above their 50-day moving averages last week. It appears that there are a couple of important moving average tests right around the corner. The Nasdaq is approaching its 50 DMA and the (smelly) SOX is just under its 200 DMA. The SOX looks like it’s on the verge of turning the corner. A close above its January high would be a very constructive event.. if you’re bullish. 
