Market Pulls Back After Gapping Up on Jobs Report

Randall Forsyth at Barron's posted the above column today after we published a report for Bespoke Premium members showing how the market has historically done on days when employment reports have been much stronger than expected.  As shown in the report (click thumbnail below to view), prior to today, the S&P 500 tracking SPY ETF had gone down from the open to the close 8 out of 9 times when the actual jobs number was better than expected by 100,000 jobs or more.  Today was no different.  The jobs number came in 114,000 jobs better than expected, the market gapped up more than 1% at the open, and then it declined throughout the trading day to close only slightly higher.  It seems that the initial response to these strong reports is very positive, but then enthusiasm wanes throughout the trading day.

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