After huge jobs number, bulls proclaim ‘off we go!’

Bears have long complained that while Wall Street is partying, Main Street is struggling—proof, they said, that stocks are overvalued.

Thursday's jobs report provided just the latest evidence that that's really no longer true.

288,000 jobs were created in June, and the unemployment rate fell from 6.3 percent to 6.1 percent, according to the latest data from the Bureau of Labor Statistics. Average hourly earning ticked up to $24.45. And while some have fretted about the 523,000 decline in full-time workers (on a seasonally adjusted basis) registered in the noisey houshold survey, the average weekly hours of all private nonfarm employees held steady at 34.5.

The report, which shows plus-200,000 job growth for the fifth straight month, is seen as a relief after the first quarter GDP growth number was revised to show shrinkage of 2.9 percent.

Just like that bowl of Goldilocks' porridge, US payrolls just right

"The economy's improving, and we're at in a good cyclical place," said Mark Dow, a money manger who writes at the Behavioral Macro blog. "A lot of people who are tempted to look at things glass-half-empty kind of got sucked in by the negative 2.9 GDP number, but this drives a stake thorugh the heart of people who are hoping that the economy " is really bad.

"The economy went from anemic to slugglish, and maybe if we're lucky it will go from sluggish to modest," he added.

Stocks certainly responded positively to the news. The S&P 500 and Dow Jones Industrial Average both promptly rose to all-time highs, with the latter breaking the much-watched 17,000 mark.

Dow 17,000: Who led & lagged the last 1,000 points

"As far as stocks go, I don't really see any need to get out of longs yet," said Jim Iuorio of TJM Institutional Services. "Right now, it seems like we're in the perfect situation, where the numbers are good, the Fed is in no hurry to get away, and I think that probably should continue for a while."

Michael Block, chief strategist at New York-based broker-dealer Rhino Trading Partners, echoed that sentiment.

"Off we go," he said. "It's a good-looking number. And meanwhile, let's face it, the Fed is not focused on any kind of economic thresholds."

Traders work the floor of the New York Stock Exchange.
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Traders work the floor of the New York Stock Exchange.

Indeed, as recently as January, the Federal Reserve mentioned that a 6.5 percent unemployment rate remained one of the thresholds it was watching when it came to keeping an its federal funds rate target ultralow. Since then, the Fed has switched to qualitative guidance, saying only that it will "assess progress… toward its objectives of maxiumum employment and 2 percent inflation." That leaves many market participants confident that the Fed will not look to hike rates too soon just because the unemployment rate is falling.

Still, not everyone is so sanguine. Jim Paulsen, chief investment strategist in Wells Capital Management, asked in a Thursday note whether "good news on Main Street could beome bad news for Wall Street—including over heat/inflation/fed fears, higher bond yields, and/or a stock market PE contraction."

After all, after years of investors worrying that Main Street was lagging far behind Wall Street, "Would it really be surprising now when Main Street performance is finally improved that Wall Street experiences at least a temporary period of turbulence as it sorts out whether inflation is a real concern and considers exactly how the Fed will respond?"

Meanwhile, in the nearer term, calls for a correction have not receded.

Tony Dwyer, US portfolio strategist at Canaccord Genuity and currently the biggest bull on the Street with a year-end S&P target of 2,185, continues to predict that the market will drop before heading higher.

"We still expect a correction," Dwyer wrote to "We never want to bet against a fundamentally based bull market, but to be an aggressive buyer with new money, you want to do that when: 1) the market gets oversold on an intermediate-term basis or 2) perception of a Fed rate hike is lessening. Neither one of those conditions currently exist."

Read MoreWall Street's biggest bull calls for a correction

—By CNBC's Alex Rosenberg.

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