Quiet Consolidation Day

The market ended up slightly, making up a little bit of yesterday's losses. Taken together, the last 2 days have been the sort of consolidation that you want to see following a couple big rally days.

I like to see the markets take a little breather, without giving too much back. I also like to see volume dry up a little, which it has done over the last 2 days.

Now we have to hope that tomorrow's jobs report isn't too strong. We are in the mindset where a little signs of weakening in the economy are good because they take the pressure off the Fed to keep tightening.

The consensus for tomorrow's payroll report is 185,000. This figure moved higher this week after ADP predicted a strong number. I think any number around 200k should be okay for the market. Even if the market sells off initially, it will likely rebound by the close.

Biotechs were fairly strong today, a noted change. This group has been weak for most of this year. If these stocks begin to participate, it would be another welcome sign for this nascent rally.
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