SPX traded in an even tighter range (roughly 6 points) as traders await the NFP number tomorrow. Markets are forming an ascending triangle and have been knocking on the door of 1545 the past couple of days. The more times the market bangs on the door, the weaker that door gets.
Short, medium, and long term trend still remains up. No change to the target of 1560. A 1+% movement is clearly not unattainable 1560 is slightly outside the minimum target of the ascending triangle but certainly markets can go further than what objective rules would indicate.
This seems to imply that the NFP report ought to be positive/surprise.
Looking back, it is amazing that the markets have reached this level....back in March 2009, I wouldn't have imagined the market would get back to this level. Certainly one could draw a line connecting the tops of 2000 and 2007 and say, hey, in about 4 years yes we could be at this level but who would have put money on that back then?
Should tomorrow make it to 1560, the SPX would be up 8 out of the past 9 trading days. Hence, I will be on the lookout for a possible short position after 1560.