Was MAY'S Job report that surprising ?

Market went in a freefall after looking @ May's job growth of 54,000.

There was clear signal that economy has retreated in MAY.....

Economists work their model based on last month reports, April was a robust month for economy. It is ironic that not a single economist comes close to most reports, either they are too bullish or they are too bearish.

The real consensus was job growth of 165,000, actual was 54,000....so highly paid economists missed the actual by 111,000.....so they collectively scored 32.73%...it is lower than F grade....

Back to reality, there was consistent reports of economy slowing down worldwide. Chinese started this slowdown by clamping down on "runaway growth in GDP......."

There is serious inflation concern in India & China who are trying very hard to control inflation by raising interest rates month after month......

US data in manufacturing has been faltering lately......which meant loss of jobs.....

SO..here we are in June of 2011 with so so job growth, which may be norm for next 3 months. June, July & Aug may show anaemic job growth based on seasonality.

Markets are being beaten down for 5 weeks of downtrend.

As we closed near lows of the day, we may see selling @ open on Monday.

S&P 500 has retreated 3.52% from recent highs.

RSI @ close is 37.80

When RSI is this low, we are generally few RSI points from bottom.

Markets continues to be in a narrow trading range. It is important to trade frequently & NOT miss any gains or else it may disappear in a hurry.

I expect market to trade between 1290 to 1340 in a repetitive mode...

This market MAY be the best trading market in a while.

Do NOT get discouraged based on today's TAPE which was event driven.

I expect market to find its footing on Monday.

Good luck with your OWN analysis of market & trading decision.

BLOG does NOT give buy or sell.

Saleem