Funny Math

Maybe it's me, I just don't get it. When you subtract 240,000 jobs from the work force, doesn't that mean more people is being unemployed. If yes, then how can the unemployment rate go down from 9.5% to 9.4% if there are more people without job. Did I miss the new job creation number of more than 240,000 somewhere? It must be the new funny math.

The market looks like it was getting ready for a pullback, then this funny math job number came out on Friday and the market sucked it up and moved higher. This tells me there is panic money on the sideline waiting for any excuse to get in. Looking at the weekly chart for the DJIA, SP500, and the Nasdaq 100, they all seem to be bumping against resistance from Fib retracement level. If these indices can't move above these retracement levels, they will at least pullback to their recent breakout level (see the chart for details.) In addition to these indices, the two sectors that have been the catalyst for this rally, the financial and technology are also bumping up against resistance. As I see the market, I wouldn't be surprised to see some pullback in the week ahead.