Unemployment Claims Magic

S&P 500 was trading subdued only till unemployment claims release – then, it took off, and hardly looked back. Following very fearful sentiment after Monday‘s rout and Wednesday‘s failure of BoJ to instill calm through backing off raising rates, equities jumped on the first data excuse to rallyall the way to Wednesday‘s highs.Initial unemployment claims at 233K vs. 241K forecast and 249K prior when both 4-week claims average and continuing claims came above expectations, is hardly proof of a strong economy. Good enough though for a daily short squeeze that was marked by some interesting market breadth developments. Similarly, the VIX declined in the end below not just 25, but also 24 – attesting to easing fear in the markets, all accompanied by steeply having risen spread between smart money and dumb money sentiment. Valuable clues. More By This Author:Told You So, BuyersWhere Is Soft Landing?Why This Flush