Still Bullish on the S&P -- but Be Careful
In the bigger picture, I am still bullish on the S&P 500. I have to throw up a caution flag, however, as we have recently seen some nice price extensions to the upside -- and the index is also moving into some Fibonacci time cycle resistance. As a reminder, many moves tend to terminate at extensions of prior swings, even if only temporarily. Also note that the odds for a reversal of the current trend are higher when you see a clustering of Fibonacci time cycles.E-Mini S&P 500 Futures -- Daily Source: Dynamic Trader View Chart » View in New Window »
That said, I'll be fine if Friday's employment data push the S&P E-mini futures through the current resistance parameters and head toward 1456.5, my first upside target for the rally off the June 4 low. But I won't assume that that will happen. If the fundamentals want to give me another opportunity on the buy side, I'm fine with that, as well. As long as any decline terminates above the recent June 25 low, I will look for another buy trigger and entry on the buy side. If, instead, that low is taken out, I will back off the buy side until further notice. Frankly, going into this market before the employment number is a bit of a crapshoot!...196 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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