WEAK JOBS REPORT PUSHES STOCKS DEEPER INTO CORRECTION -- FOREIGN STOCKS DROP AS WELL -- BOND PRICES JUMP AS YIELD DROPS
NASDAQ BREAKS MARCH SUPPORT -- S&P IS CLOSE TO DOING THE SAME ... A very weak jobs report this morning has contributed to a sharply lower open in global stocks. Chart 1 shows the Nasdaq Composite falling below its March low near 3200, and its 50-day average. That raises the likelihood for a drop to its February low at 3105. Chart 2 shows the S&P 500 testing its March low at 1538. A close below that initial support level would signal a further drop to its February low at 1485. Foreign stocks are falling as well (Chart 3), especially those tied to weak commodity markets (Australia, Brazil, Canada, China, and Russia). European stocks are dropping as well. Japanese stocks are holding up better, thanks to yesterday's huge monetary easing (and a weaker yen). U.S. bond prices are jumping (Chart 4) in a flight to safety (and some buying coming from Japan). The 10-year bond yield has fallen to the lowest level of the year. Gold is getting a minor safe haven boost, but remains in a major downtrend. I'll take a more in-depth look at some of these trends later in the day.
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Chart 1
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Chart 2
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Chart 3
