2/6/2014

The S&P at this point has recovered more than half of the most recent down wave. We broke 1770 today, and while there was difficulty staying above the level, a close at 1773 seems pretty solid.

Friday will see the release of the 'Employment Situation' report at 8:30 am. In the event of an open lower, the key level is obviously 1738-1735. For the upside, 1800 will likely be tested if the report spawns a rally. How the price action acts there will be pretty telling.

The weekly charts still look bearish, but we could really use a solid hold under the 1755-1750 area to negate the big trend from November 2012.

I am totally neutral until the open on Friday. This corrective up wave went a little higher than I had thought it would.

S&P 500 Daily Chart

S&P 500 Hourly Chart

S&P 500 Weekly Chart