The pre-market was bullish in reaction to the employment report based on limited inflationary pressure and seemingly well paced economic growth which in general is good for stocks. However, treasuries responded negatively to the employment report because it didn't provide any evidence for a possible end to the monetary tightening by the Fed. The increase in the 10 yr. note brought stocks down. The 10 yr.note yeild has been flirting with 4.9% all week and has been stifling a full blown stock market rally for some time now. Today it closed in on 5.0%.The Nasdaq shed 22 points, carving out a wide range bearish engulfing pattern on slightly lower volume. The lack of volume suggests that we may be able to overcome the drastic drop in price, but I'm doubtful that we can snap back quickly. My entire sector screen is red so all sectors participated in the fall, with the SOX and NWX, the hardest hit and software the least affected. Within the software sector, certain applications software actually were bullish today and most of the week. Examples are ADSK, ADBE, CTXS, and INTU. Today's NDX losers were topped by RIMM, JDSU, and AMZN. The NDX winners, of course, you guessed it, include ADSK, ADBE, and XRAY.
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