Monkey Time: SP500 Levels, Refreshed...

Can our monkey hold onto the high-wire of price momentum into and out of tomorrow? Here’s the SP500’s setup into the unemployment report:

1.       Immediate term TRADE resistance = 1,011

2.       Immediate term TRADE support = 990

3.       Watch out below line of support = 967

I say watch out below because I think a close below 990 takes the monkeys down to the floors of their cages. We’ve had 14 straight days of positive TRADE and TREND across all 9 sectors of our SP500 views – the only other clanging momentum rally of that duration in 2009 was the one that ended, abruptly, at the beginning of June.

If you really want to throw a monkey wrench at this, think about the implications of a fantastic unemployment report tomorrow… Yes, it may very well drive the US Dollar higher (like the jobless claims # did today). Dollar up, and momentum monkeys fall down – you’re seeing a sneak preview of that today.

A worse than expected unemployment report tomorrow would throw everyone for a loop if it equated to Dollar down and everything straight up. That’s when you’ll see that 1,011 print. That’s the line I’ll sell. I’m a better buyer here.

KM

Keith R. McCullough
Chief Executive Officer

Monkey Time: SP500 Levels, Refreshed...  - spref