The market had been fixated on the "specter" of Fed tapering for so long that I was surprised at the exuberant reaction when the numbers came out at 8:30AM. However, I also noticed that the S&P Futures had been rallying through Thursday night. Normally, with such a pivotal report impending the market normally trades flat going into the release. It was as though more than a few people knew what was in the report before it was announced?
In any case, we must consider that, in the face of the relatively strong employment report, Friday's rally spoke to a fundamental shift in market participant psychology. And it is this fact that will be one of the focuses of this commentary.
Here's where we stand with the S&P 500 as of the close on Friday: