It seems that 1060 held as resistance again today. The Bulls must re-capture 1060 in order to push higher. It looks like it's all up to the jobs report tomorrow. I expect it to be bad, even with made up numbers from the Fed...
Volume was light with only 150 million shares traded on the spy. Which should have pushed the market higher. Remember, light volume equals higher market... hence, heavy volume equals down market. We should have had a bigger up day today with such light volume.
What that says to me is that the market is tired and ready to correct down. Add that to the fact that the dollar seems to be finding a bottom (triple bottom at 22.60 on the UUP). That spells trouble for the market. Regardless of what others are doing, I'm still short. I will only exit if the market closes above 107.65 on the daily chart of the spy.
We are in a down cycle, and should have a short term bottom on around the 16th-19th. I'm looking for 995-1000 by option expiration on the 16th. The next level of support is at 980, then 950. With only 7 trading days left till the 16th I don't think that 980 will be hit, but you never know? However, 995-1000 will produce a bounce on the first hit down. So, I'll get out there and then look to re-enter when the bounce is finished.