Market Outlook:

This morning's jobs report suggests that despite the miserable winter weather that has gripped much of the country, the economy might not be slowing as much as the bears have suggested. Both the nonfarm and private sector payrolls were well above expectations, which provides hope that the now-familiar economic speed bump can be avoided this spring. Stock futures like the news and it appears that save new developments in Crimea, the bulls will attempt to make another round of fresh all-time highs on this fine Friday.

Looking at the charts... Although the bears are beginning to get excited about the facts that (a) stocks are once again overbought and (b) investor sentiment is becoming a bit exuberant, the trend of the stock market remains positive across all three major time frames. As such, it appears that this is a time to avoid the temptation to "call the top" and simply enjoy another ride on the bull train. With that said however, it is important to recognize that this bull is getting old and that trees don't grow to the sky. Therefore, having an exit strategy remains critical at this stage.

S&P 500 - Last 6 Months



Have a great day!



David D. Moenning Founder, StateoftheMarkets.com President, Heritage Capital Management