Well, on the bright side, what worse can happen?
Both the ECB and the BOE left their rates unchanged (because Europe is fine, I guess) but we're still waiting for Draghi (8:05) to explain himself. Yesterday's Fed Beige Book indicated the US is still in a SLOW but steady recovery and we're waiting for Unemployment at 8:30 and Consumer Comfort at 9:45 but it's all about the Non-Farm Payrolls Tomorrow morning (8:30) as the key data-point for the week.
Unfortunately, according to the WSJ, at our present rate of job growth, it will take the US more than a decade to get back to "full employment," which is 4.5% Unemployment. Of course, the WSJ does need to be reminded that, at the Bush rate of job losses, no one in the country would have had a job by the end of the decade so, despite their concerns – we are a bit better off than we were 5 years ago. Slow and steady does indeed win the race, especially when the alternative is plunging headlong into the depths of Economic Hell…
Speaking of plunging – as you can see from our Big Chart, we're hitting our predicted pullback targets (the 50 dmas) already so of course we expect a little bouncing action. As I noted to our Members yesterday, we expect at least weak bounce levels to be made on our indexes and those are, according to our 5% Rule® (see original comment for details):
- Dow 15,108 (weak bounce) and 15,216 (strong bounce)
- S&P 1,622 and 1,634
- Nasdaq 3,420 and 3,440
- NYSE 9,280 and 9,360
- Russell 975 and 981.40
Notice that Russell 975 was the breakdown line we predicted last Wednesday and now it's forming overhead resistance – so we'll be keeping a very sharp eye on that line for directional plays. Anything less than a weak bounce will keep us bearish this morning and, if we fail to retake those weak bounce lines today, nothing less than a strong bounce will get us off the bearish bandwagon we jumped on last week. Of course, we don't just talk the talk at Philstockworld, we also walk the walk and, over the weekend, I wrote "Hedging For Disaster – 3 More Option Plays that Make 300% if the Market Falls" (as we already had other bear plays from Member Chat) and, already,…