Market Is Trying To Breakout – Use This Level As Your Guide Today

Posted 9:30 AM ET - Tuesday the market dropped after North Korea fired missiles over Japan. The low was established early and stocks reversed. That set up a bullish backdrop on yesterday and a decent ADP report (227K) fueled the rally. GDP was also revised upwards to 3%. The SPY closed right at resistance and this morning we are poking through. Friday's Unemployment Report is projected to come in at 190,000. A good number is already priced in. Swing traders should still remain sidelined. The price action looks good, but dark clouds are looming. Wait until trading conditions return to normal. If the market can easily break through the all-time high we can passively join the party. However, we will use that breakout as our entry point for shorts if the market falls back below it. Higher interest rates and debt ceiling squabbles will keep a lid on the rally. Day traders should use SPY $246 as a guide. If we are above it, favor the long side. If we are below it, favor the short side. Try to make your money early and know that the volume will dry up once the momentum stalls. Holidays tend to have a bullish bias. These are the final days of the doldrums. The market will have a slight hangover after the long weekend, but the action will pick up. Get ready for action. I will not be posting market comments Friday. Have a great holiday and enjoy the last days of summer. . .

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