There was no question that the stock market liked what it saw in the May employment report on Friday, both in terms of the economic messaging and the policy messaging. In brief, the takeaway from the market’s vantage point was that the economy may not be destined for a hard landing and that the Fed may not be destined to raise rates again in June.<\/p>\n\n\n\n
Consequently, the stock market fulfilled its destiny of having a big day. The Russell 2000 soared 3.6% and the Invesco S&P 500 Equal-Weight ETF (RSP) had a better showing (+2.2%) than the market-cap weighted S&P 500 (+1.5%).<\/p>\n\n\n\n
As we start the new week, the question today is: what now?<\/p>\n\n\n\n
The S&P 500, which was flirting with 4,100 about a week-and-a-half ago, is now testing resistance at 4,300 or the high seen last August. In turn, CNBC<\/em> is teasing the point that a close above 4,292.438 would signify the end of the bear market. That’s a little over 10 points from where we closed Friday.<\/p>\n\n\n\n Thus far, there hasn’t been much carryover buying interest. To be fair, there hasn’t been any concerted selling interest either.<\/p>\n\n\n\n Currently, the S&P 500 futures are up one point and are trading in-line with fair value, the Nasdaq 100 futures are down 15 points and are trading 0.1% below fair value, and the Dow Jones Industrial Average futures are down 17 points and are trading fractionally below fair value.<\/p>\n\n\n\n There is a good bit of news in the mix (or soon to be):<\/p>\n\n\n\n\n