Here we are folks the Bulls made a good stand on Friday, after worse than expected Job Numbers sent the market reeling early on. After a nice base setup that originally looked to be a Bear flag, the Bulls stepped in and pushed the market back up into the close. while ti was still negative, the buyers made their point: They were using this weakness to get positioned on the long side.....at least for now.
The close back above the 200 day moving average is bullish and suggests we are ready to move higher. So, do we have the green light for full steam ahead? Well, not so fast.....
As the chart shows, there are key Fibonacci retracements that stand in the way of a full blown rally. For now, I will be watching those levels as backstops to short against IF A REVERSAL PATTERN SETS UP. YES, I AM HEDGING MYSELF! I believe we can see higher if those levels are breached, but I will not get stubborn if they prove to be formidable opponents.
The FOMC meeting is this week, and there has been a historical tendency to trade higher into it. coupled with the stand the Bulls made on Friday, I will be watching for weakness early in the week for a buying opportunity.
