Were The Market Reversals On The Jobs Data Significant ?

 Were The Market Reversals On The Jobs Data Significant ?

Over the past month, there have been a number of economic reports, including Consumer Confidence, Chicago PMI, Philly Fed, Retail Sales, and Consumer Sentiment, that have come in better than expected. With that positive track record, last Friday’s job report of 266,000 new jobs, when one million were expected, came as a surprise to both investors and economists.

It was no surprise that the report quickly became a topic of political debate, but the financial market’s reaction was even more interesting. Some analysts, myself included, thought that the stock market might react negatively to a sharply lower number. But that was not uniformly the case.

The hourly chart shows that, earlier in the week, the Dow Industrials was making higher highs (line a). The S&P 500 was level leading up to…

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