Potential signal:
- I am buying a pullback anywhere near the 7440 level, with a stop at 7410, and a target of 7600.
The S&P 500 was noisy on Wednesday, which makes sense, as we have gotten a little ahead of ourselves before the Non-Farm Payroll.
S&P 500
The S&P 500 has been noisy on Wednesday, and that's not a huge surprise considering this is a 4-day work week in the United States. In other words, we get the jobs number on Thursday, and people will be gone for the Independence Day holiday on Friday.
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So, with that being said, I suspect that any sell-off during the Thursday session—unless of course the United States prints a ripping jobs number I think this is a buy on the dip market. The expected number is 114,000 with an unemployment rate of 4.3%. We'll see how close we are to that. It could be a non-event. It could be a matter of the number coming out and telling us what we already knew, that the US economy is still working. But short-term pullbacks at this point in time, I look at as potential buying opportunities.
Technical Formations and Forward Targets
We are in the midst of forming something akin to a W pattern, and I think ultimately this is a market that I think will continue to go looking towards the 7,640 level, which is an area that previously had been resistance. Ultimately, this is a market that once we break above there, I think we go looking to 8,000, but it may take some time.
We had a massive move to the upside until basically the beginning of June, and we've chopped since then. I think we probably have more of that ahead of us. It's interesting, it looks like we're compressing, so the market is clearly waiting on some type of move.
It's a little early, we'll have to wait and see, but one can suggest that perhaps we are in the midst of trying to form a symmetrical triangle, maybe an ascending triangle if we rise a bit on Thursday. That would be confirmed somewhere around 7,600. A break above that level, I think, really gets people interested. I like buying dips; I don't have any interest in shorting.
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