Just as we had a “pointing” event at the end of the previous week’s trading (a final 8 minute price surge for all the indices), the trading week just ended on Thursday produced a big development that should greatly influence the markets next week: the March jobs report blew far, far past forecasts, and produced a drop in unemployment rate to 6%. The result of the week’s trading gave us an S&P with its first close ever above 4,000.

And we ended the week with a day that saw a 4,000,000 dose vaccination record. Two potentially moderating influences on all this good news is stubbornly gaining interest rates, which many now expect to reach 2% for the 10-yr bond, and many states seeing increases in COVID cases despite the progress on the vaccination front. Not surprisingly, some of the more dour experts in the “dismal science” of economics are predicting a significant downward reckoning given the long period of the market’s bullish expansion. Of course, like blind squirrels searching for nuts, they will eventually be right.

Meanwhile, last week forecasts a good next week for the bulls.

In terms of this week’s market condition, we used the high volatility settings to scan the conforming credit spreads. Premier Members can view the screening reports of conforming credit spreads, and others can join us to test-drive free for 30 days.