Bull Market Faces First Test

29 Ağu 2023

Today's economic news was jobs data which in fact came in worse than expected.

"In July there were just 8.827 million job openings, the first sub-9 million print since March 2021. It was also the 3rd biggest miss on record!" -Zerohedge

Yet despite this news the stock market rallied significantly higher. The market responding positively to bad news is a fundamentally bull market phenomenon.

In the technical context what the market has done through the month of August was a -5%+ correction. Statistically, in any given year there are on average 3 -5% corrections. In March we had the first and now as the market rallies it is very possible we have seen the second.

The correction stopped just where it should; the 50% Retracement of the May - June rally. It has now come to test today the 50% Retracement of the move down. As of writing it does appear that it will close above this level which suggests a retest of the July high. Breaking this high is likely due to the strength of the bull trend of 2023.