This morning, the U.S. Labor Department released the non-farm payroll report for the month of January. The report was better than expected as there were 243,000 new jobs added. The unemployment rate also declined to 8.3 percent in January from 8.5 percent in December. While the report was very good and better than expected the data is always controversial. Traders must realize that the major stock indexes have been trading higher since December 19, 2011 without any meaningful pullbacks. These markets are extremely overbought and extended at this time. This morning, the S&P 500 Index e-mini futures (ES H2) are trading higher by 12.00 points to 1334.50 per contract.
