After the SP500 closed yesterday above the 1100 at 1102.87, I was prepared to shift gear to be on the lookout for bullish setups. However, with today’s dismal job report and a whole host of negative news flow, the market did one of those sudden reversals and the SP500 ended up closing below the 1065 support level. Fortunately, I was not trapped by any long setups today. For now, I am just waiting to see what Monday will bring, a bounce back above the 1065 or a violent drop below the 1040 level.
As I have expressed in recent posts, the current market conditions are for day trading and scalping only. I would not try to be a hero here and go bottom fishing; I could end up being food for the bears. The critical levels for me remain to be 1100 on the upside, 1040 on the downside. Until the market has made a decisive move on one of these levels, sideline is the place for me to take shelter.
