Wall Street >>> Stocks Post Solid Gains Despite Jobs Report

Wall Street posted solid gains Friday, rallying despite a disappointing August jobs report that showed the unemployment rate has climbed to territory unseen since the Reagan administration. The market was relatively flat in morning trade before sharply rising around noon, with all major indexes gaining around 1 percent.

Today’s Markets
The Dow Jones Industrial Average rose 96.66 points, or 1.03%, to 9441.27, the Standard & Poor's 500 climbed 13.16 points, or 1.31%, to 1016.40 and the Nasdaq Composite picked up 35.58 points, or 1.79%, to 2018.78. But for the week, the Dow was down 1.1 percent, the S&P 500 was off 1.2 percent and the Nasdaq lost 0.5 percent due to a sharp sell-off in the first three days of the week.

The markets flirted with just minor gains earlier in the session but turned higher in the early afternoon, led by a broad rally. It's worth noting volume was relatively low as traders left early for the holiday weekend.

Still, the solid rally comes after the Dow climbed more than 60 points on Thursday, ending its longest slump since late June. After climbing for eight consecutive days, the longest win streak since 2007, the markets hit somewhat of a wall amid fears stocks have gotten ahead of the still-weak economy and talk of September’s ugly track record.

The Dow was led higher Friday by General Electric, Caterpillar and Disney. The index's weakest components were its defensive members such as Wal-Mart and Procter & Gamble.

Markets initially fluctuated after the Labor Department said the U.S. lost 216,000 jobs last month, slightly better than economists' expectations for a loss of 225,000 jobs. However, the government said the unemployment rate jumped from 9.4% to 9.7%, compared to the 9.5% economists had forecasted.

Crude Oil followed the equity markets higher +0.2%, to $68.16.

Technical Outlook

Price returned to decline and trade around chief support levels for the ascending channel, where we expect the price to decline and form a possible neckline for the bullish technical pattern at 69.35, where we can expect an upside for today; breaching through it the neckline level mentioned, and directly targeting reaching level 71.20. The momentum indicators gained positive momentum, after declining yesterday evening; supporting our expectations of an awaited upside for today.

The trading range for today is among the key support at 65.00 and the key resistance at 73.15.

The general trend is to the upside as far as 47.20 remains intact with targets at 85.00.
Support: 67.90, 67.30, 66.50, 65.25, 64.65

Resistance: 69.35, 70.15, 71.50, 72.60, 73.25
Recommendation: Based on the charts and explanations above our opinion is buying oil from 69.35 To 71.20 and stop loss below 68.35, might be appropriate.