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The employment report came in well below even conservative expectations for job gains. This quashed the silly rumor mill of gains from 200K-500K. The headline unemployment rate was down but most of this was attributed to declining work force. This initially stopped bulls in their tracks as many pundits were trotted out to give explanations that mattered little. Behind the numbers were a series of good charts that better portrays the poor situation below:

The amount of Americans unemployed for more than 27 weeks is increasing, after a minor dip in 2010.

The duration of unemployment is rising yet again. People are just not going back to work.

And now many are dropping out of the workforce all together, as they can't find jobs to fit their skill sets.

One reason many aren't going back to work is that the construction sector simply isn't coming back. Those who lost their jobs here have nowhere else to go.

Bernanke was testifying at the Senate Banking Committee and it was a bore. His theme of no inflation when addressing the "core rate minus volatile food and energy" drives me nuts. But, senators nodded their agreement, or were they just dozing off?  However, this week commodity market carnage was evident perhaps proving his theme.

Stock markets were led lower early by a Mass. Supreme Court ruling preventing foreclosures but bulls were able to generate an afternoon rally. Why? Because they want the old maxim, "as the first week of January goes, so goes the year" to hold true. So they were able to claim a gain for the week.

But, what I really get out of markets today is the previous theme of "bad news is good, good news is better" still captivates bulls even if the pace of this will slow. Ben will continue QE2 and keep rates low.

Volume was light once again and perhaps this is the new normal. Breadth was negative.

Continue to U.S. Sectors, Stocks & Bonds

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