NEW YORK ( TheStreet) -- Weak jobs data released Tuesday confirmed the need for continued monetary stimulus as the jobs numbers came in below expectations.
The chart below is of SPDR S&P 500 (SPY). Equities briefly pushed up to record highs at the open, but soon fell lower in a "flash crash"-like event.
One takeaway from the morning fall and ultimately where we closed at was the reemergence of the "Fed put" theme. The Fed put is an euphemism for the limited downside of equity markets due to monetary intervention from the Federal Reserve.
Payrolls data were weak, but the Fed isn't expected to pull stimulus till at least 2014. That expectation has halted an all-out free fall from ensuing at our present lofty levels.A push toward the 1800 level in the S&P may not be warranted just yet, but the deep correction many have been looking for may not be in the equation, either. Indicators look to be pulling back in equity indexes, but to assume that means a fall to 1500 in the S&P may be premature. (GLD). Although the Fed put may be reemerging, investors don't have the courage to invest fully in a tech-heavy portfolio. Tech stocks sold off heavily in the panic sell early Tuesday afternoon, while gold stocks showed overwhelming strength. Gold has broken out of its channel lower and looks to be pushing toward multi-month highs. Follow @AndrewSachais This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV