I feel like a condemned man heading to the gas chamber and found out he had a stay of execution.
The markets reversed the overnight slide and gapped higher at the open on positive economic news and the falling dollar. The position in the Russell ETF reversed back into positive territory after the Russell resumed its out performance.
After Wednesday's unexpected decline the Russell rebounded +3.2% on Thursday and well more than the other indexes. The Dow gained +2.1% and the S&P +1.9%. The Nasdaq was a little better thanks to a final 15 minute buying spurt that pushed it to +2.4% for the day.
Still, the Russell out performance trend returned and that is what we are counting on to be profitable. Resistance on the Russell is 580 and that is exactly where it closed today.
The Dow closed over 10,000 by a whisker and further gains on Friday would be bullish although I would not be surprised to see it fail at that level temporarily.
The jobs report will be released before the bell on Friday and this is a critical market moving report. If it comes in better than expected we could see shorts racing for cover if the Dow moves higher over 10K. A worse than expected number could poison market sentiment but then everybody already knows jobs are bad. I think the risk is to the upside but after today's gains traders may want to take profits on a weak number.