Confirmed Rally

Friday is a big day on Wall Street, with the jobs number being released at 8:30AM EST. I do not expect this to be a favorable number at all. In fact, good news is hard to find on the financial pages, unless you check the recent movements of the DOW and NASDAQ.

Given the high level of pessimism, the market has been acting good of late, with high volume up days and edging down on lackluster volume. This type of market action is exactly what you want to see if you are a bull. Whether the market explodes to the upside or is in stair steeping ascent (preferred) remains to be seen, but market action suggests the bottom is indeed in and it is forecasting better things ahead.

As indicated in a previous post, Wal-Mart(WMT:NYSE) has broken out to a four year high, which I consider powerful. I find it difficult to visualize the economy is continuing to sink while the worlds most powerful retailer is striking to new highs.

After the jobs report, should we survive the day without compelling volume on the downside, it will be a significant sign going forward for the economy and the corner of Wall and Broad. I think the rally will stay on track, at least for now.