- Fitbit Quarterly revenue jumped up to $400.8 million, which beat a $319 million forecast.
- U.S. unemployment rate held at a seven-year low of 5.3%.
- Service Industries in the US expanded at the fastest pace in a decade.
However, from a a short-term perspective (days - a week), we see a potential reversal looming. With the hammer pattern on Friday, we should be looking out for a follow through confirmation bullish candle on Monday. This is somewhat likely considering how oversold the DJIA is. A potential trade would be to go long the DIJA and put your stop just below the hammer pattern.
The S&P 500 closed at 2077.57 on Friday, August 7th 2015 versus a week ago of
Similar to the DJIA chart, we see hammer candlestick. However, without any confirmation of this bullish candle, we can only guess if this is a true indicator of positive prices to come. If you look closely, you can see that the 50 DMA crossed the 20 DMA and this is otherwise known as the "deathcross". This is definitely a bearish signal. Though I would wait until I see a run up back to overbought territory before trying to short this market.