The bulls wiped out a lot of bears today...
The rally up today was one big short squeeze on no news. However when Obama leaked out that the Friday job's report is really going to be good, the market rallied. Great timing Obama. I wonder if they have ever released good news when the market is topped? Or how about releasing bad news when the market has bottomed?
No, of course not... they play the game of tricking both bulls and bears, by carefully releasing news at pre-planned time points. Today they wanted to rally the market, and that's exactly what they did. All the retail buyers went long today, and more will jump on board tomorrow too.
We could now go up to the downward sloping trendline at 1120 spx, into Friday's wonderful jobs' data. Wonder how good it's going to be? I'm excited, as I need a job... especially since my current job is about gone now. I want too sign up to be a census worker too. I know they must be high paying jobs... after all, the last statistic I heard was that it cost $150,000 for every new job created. It's got too pay well... right?
But who needs a job anyway? I'll just go long when the wonderful jobs data is released, as I'm sure that will cause a huge rally up to new highs... right? Just paint "I'm a sucker" on my forehead, and I'll even borrow money from my mortgage and credit cards to invest in this new bull market.
Ok, so enough ranting and raving...
Here's the chart of the spx on the 60 minute time frame. As you can see, we are still heading up on the MACD's and the histogram bars are rising into positive territory now. It could continue higher or roll back down. If it continues higher, then you can expect 1120 spx to be the first target, and then possibly 1140 spx. If it rolls back down, the market should fall hard and fast, into a wave 3 of 3.
So at this point, it's up to them as to what they want to do? Do they want to rally for the rest of the week and into next week, and then take the market down. Or, do they want to take the market down starting tomorrow? Either way, the market is still in a confirmed downtrend, and will likely continue lower for at least this month, if not the next month or two?
Pretty simple then... a gap up and we go higher to 1120 - 1140, or a gap down and we start the next leg down in the bear market.