The DOW, S&P 500, NASDAQ, and Bitcoin all triggered new green monthly Trade Triangles signaling a move to a long-term uptrend. The move higher was on the back of a historic and surprising gain in U.S. jobs that raised hopes that the economy is starting to recover from the coronavirus pandemic.
U.S. employers added a shocking 2.5 million jobs last month, the largest gain on record, while the unemployment rate slid to 13.3%, the Labor Department said Friday. Economists polled by the Dow Jones expected a drop of more than 8 million jobs and the unemployment rate to nearly reach 20%, which would have been the highest since the 1930s.
For the week, all three major indexes made significant moves to trigger the green monthly Trade Triangles. The DOW will post a weekly gain in excess of +7% while the S&P 500 will check in with a weekly increase of +5% and the NASDAQ, the first index to trigger its monthly Trade Triangle will gain +3% on the week.
While Bitcoin’s gain this week pails in comparison to the indexes, standing at just +.8%, it was enough to trigger the green monthly Trade Triangle that we’ve been waiting on.
Crude oil is still on the move higher trading just below $40 a barrel and completing its sixth straight week of gains; It will post a weekly increase over +10%. On the other side of the coin, we have gold, which will lose over -3% on the week triggering a new red weekly Trade Triangle indicating a move to a short-term downtrend and a sidelines position for intermediate-term traders. This week’s loss marks the third straight week of losses for gold.
Just like gold, the dollar index will post it’s third straight week of losses with a loss of -1.3% and trading at the 96 level.
Key Levels To Watch Next Week: