Markets did stage a nice reversal just before tomorrow mornings big jobs report. The S&P 500 did bounce right off its big round of 1600, a number many were looking for making it almost to good to be true. That being said the move looked genuine, and must be respected. The 50 day SMA was tested today almost precisely, and was the 5% correction we encountered from the 1687 intraday high seen on 5/22 to todays low sufficient enough for the bears to succumb? It was almost as if the jobs number was already announced right after lunchtime today, and the benchmarks were off to the races. The Nasdaq rose finished 45 handles off of its own intraday low. Many leaders in their respective industries bounced right off their 50 day SMAs as well today including BIIB CBS EOG. Those in the bearish camp can hang their hats on that fact that volume was lukewarm, and the indexes recovered about half to three quarters of Wednesdays decline. The jobs number tomorrow morning is usually volatile to begin with, and even without the report tomorrow at 830am, market volatility has been back in full force since the 5/22 reversal. Buckle your seat belts.

This article requires a Chartsmarter membership. Please click here to join.