Friday’s opening should be an interesting one for major U.S. equities. The late rally Thursday in the Dow Jones Industrial Average pushed the index just above the 61.8% Fibonacci retracement level of the sell-off between Oct. 9 and Nov. 26 before settling just under that level. Similarly on Wednesday, the index rallied just beyond the 50% retracement level before settling slightly below it.
Failure to hold gains above the 61.8% retracement level could hardly be seen as weakness given the Dow’s two-day surge but the bull’s will need to be fed with positive news from the employment data due to come tomorrow in order to maintain recent gains.
