Given the markets lack of focus on fundamentals lately, the loonie by all accounts, for a growth sensitive currency is holding its own outright, but for how long? The Loonie has been riding on the coattails of a strong NFP report (+243k and +8.3%) and ignoring its own softer domestic job output print (+2.3k and +7.6%) that supports BoC Carney dovish tone and economic concerns of late.

Despite missing yesterday's update there was little to split today's or yesterday's action. The only index to attempt to put some distance on the two days was the Russell 2000. Small Caps again attempted to retake the leadership role off Tech stocks as relative strength swung back in their favour; there was even a 'Golden Cross' between the 20-day and 200-day MAs.

Bernie Schaeffer had a write up in Barron's in which he referred to an article from the New Yorker. There was one line in there that intrigued Bernie that was particularly interesting;

In effect, [investors have] decided that, in a market as volatile as this one, the only way to win the game is simply not to play.

Remember the days in Econ 101 when the professor drew the seemingly incomprehensible charts on the board (if you remember it as a black board, it means you are old)?  We should have all paid more attention.  Those arrows are coming back to haunt us now with the federal deficit well beyond the comprehension of most taxpayers.

Buyers were prepared to come in from the sidelines, doing so with heavier volume accumulation. Bull traps remain an overhead supply concern. The Nasdaq is the index most likely to challenge this supply first (possibly tomorrow).

The real winner was the semiconductor index. It was able to recover with a bear trap, regaining 388 support. It's first level of supply to overcome is its 20-day MA at 401.61, before the 50-day MA comes into range.