U.S. Stocks closed mixed on Thursday as retailers reported weak results for December.  Most of the averages still managed to close higher on the session, while the Dow Jones was the only index to close lower on the day. 

Friday, the major economic news of the weak will be reported, with the government’s release of December employment figures.  After yesterday’s weak ADP private sector report, tomorrow’s report is expected to be quite weak as well. 

However, today’s trading in the stock market indicates a nice set up for a potential upside surprise.  I like the fact that the market traded in a narrow range while closing essentially unchanged on the day. 

In other markets, the Dollar closed lower against the major currencies, which were lead higher by the Yen.  I think the currencies are going to need a period of consolidation after some big moves over the last six months.  Treasury prices were a bit higher today, resulting in lower yields for the day.  Commodity prices were mixed.  Watch out for Crude Oil on Friday, as it has a similar setup as the stock indexes.  Strength in stocks will likely translate into an upside day for Crude Oil.  These are the types of setups we like to see for daytrading opportunities.

Scott Cole