The futures are up again following the impressive rally yesterday, gaining on the sterilized bond buying program announcement from the ECB. This could all change come 8:30 am EST when the employment report is provided by the BLS. The consensus is looking for 138K thousand jobs created in August.
There is likely more juice in this market, as the S&P broke above the past high, regardless of the volume.
The break above the twelve month high suggests that we will see, at least another 100 points on the S&P 500, or 10 points on the SPY. If you look at the 10-year chart below, the next two swing points on the S&P 500 are in the $1,450 range followed by a price point in or around $1,500. These would be my short-term price objectives.
That said, I am unsure if the chance for a 5% gain merits taking off my hedges in portfolios. I say this as volume continues to weak towards the upside.
I am also concerned that that both the RSI and MACD are not confirming the the upward move, this is while the stochastic is in OB territory on the monthly chart.
There is likely more juice in this market, as the S&P broke above the past high, regardless of the volume.
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