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Stocks opened lower to start the week, rallied into the early afternoon, but dropped sharply into the close creating some negative reversals on the charts. The Dow lost 96-points on the day, while the broader indices also lost a third to a half of a percent. The small caps and the Transportation Indices were slight leaders, but still had small losses.

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After Thursday's big positive reversal, stocks were set up to follow-through on Friday, and the jobs report did not disappoint allowing the chart technicals to play out as you might expect a reversal to do. But as you'll see below, there are some possible roadblocks in the short-term that could make or break this relief rally. The Dow jumped 373-ponts on Friday and we saw similar percentage gains in the S&P 500 and Nasdaq. Small caps lagged a bit as did the I-fund. ...

Stocks fell for the third consecutive week but U.S. stocks rebounded off mid-week lows to keep those losses modest. October has stayed true to its volatile reputation. Stocks had back to back days with more than 1% losses; action we haven't seen since last December's woes. Those losses seemed to be growing into Thursday until indices reversed their action and spent the last two trading days erasing a portion of the early losses.

The trouble started Tuesday when manufacturing numbers ...

U.S. adds 136,000 jobs in September, unemployment rate hits 50-year low

Labor market shows some resilience in face of weakening economy

Source: https://www.marketwatch.com/story/us..._theo_homepage

Stocks were up early on Thursday, and then another ISM report came out - the non manufacturing ISM - which was light, and the market reacted, and probably overreacted, on the downside because the Dow quickly erased a over 300-point loss, and then it rallied to close up 122-points, making for a wild ride. You can tell investors are getting very sensitive to the economic data as recession concerns escalate, as the early fear on Thursday was palpable.

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