Market Summary

While this last week appeared to be a bad one overall in the market following the prior weeks gains it really was a pull back to support in my opinion. Wednesday the ADP report was released with bad news on the employment picture in preparation for the Friday release by the government of the Non-Farm Payroll (NFP) report. The monthly NFP report is the single most important economic report generated next to the GDP report. Knowing it was going to be bad the market discounted the price of stocks with a sell off on the release of the reports back to support levels. The 50 day moving average should act as support at 888.75 on the S&P 500. This is a 4th wave, which tends to be choppy, in the Elliott wave pattern of 5 waves in the market. I expect the market to rally into the Obama inauguration and up to the 38% to 50% Fibonacci retracement levels on the S&P 500 which are currently about 960 to 1025. Similarily, my targets on the Nasdaq are the 1750 to 1890 area and on the Russell 2000 index 525 to 570. We will just have to wait and see. Click on table to enlarge.