Today is the all important Non-Farm Payroll number…Expectation is for 180K v 162K and Unemployment Rate (Aug) M / M to remain steady 7.4%. Markets will be looking for the Feds “read-through” regarding timing of QE Taper.
S&P has rallied approximately 26 handles from the 1632 “marker” we highlighted a few trade sessions back and has broken through the important 1648.50 resistance level which has now become support. Overnight low is exactly 1648.50! (The Law of Alternate Pivot)…Simply Perfect.
So the short-term trade picture has indeed improved and trade strategy is to buy pullbacks to Key Markers. But can the rally continue enough to get above the important 50 DMA or is this just another “sell the bounce” scenario? The NFP Report may shed so light on future price direction so stay tuned.
Key parameters currently are 1648.50 “support marker”…Buy pullbacks until this level is violated. Upside penetration of 1658.25 and hold calls for continued rally which targets 1663 – 66 zone. Dynamic intra-day targets will be updated in the Trading Room.
I am at peace with uncertainty. I know there is no such thing as a sure thing. I have no particular need to be right. I understand that being perfect has no place in trading. I am flexible. I am willing to change my mind. I am alert to scenario changes. I accept the information that tells me I am on the right track or on the wrong track.