Posted May 6, 2012 17:08
The April jobs number showed that only 115,000 jobs were added. Although the unemployment sunk to 8.1%. This number made the market sell-off around 2%. This past week, the ADP number came out and reported 119,000.
In the beginning of the year, the jobs numbers were much better and showed stellar jobs growth. But now, with the recent jobs numbers showing weak growth, the sentiment on Wall Street has turned from optimism to pessimism.
The recent market sell-off could just be the beginning of a much greater correction if the market doesn’t receive any good news to lift investor sentiment. In two weeks, Facebook will begin trading. This could be the very boost the market needs to lift itself out of the recent down spell. On the other hand, one of the possibilities that Apple and Google have been going down is because of Facebook, and the idea that money managers are getting out of Apple and Google to go and buy Facebook.
From the technical standpoint:
S&P 500 Support Levels: 1340 then 1320
The S&P is currently trading at 1369, so it is still possible that the index trades down 3 to 5% until we see a change in trend.