Bulls had a big breakout on Friday. Next we must see follow though this week with a break above 195 to make sure it was not just a head fake. However, we expect a pullback in the Monday – Tuesday time-frame. So if we are up a good amount on Monday we will be looking for a short entry.
As we mentioned last week, it looks like we are on the way to test the 195 range high. Bears need to keep the bulls below this level, and below the 200 level at all costs. If the bulls break 200 we may see a breakout of the other side of the range. If the bears can keep the bulls below this level we should see at least a test of the recent 181 low and possibly a breakdown.
Long-Term Market Outlook (Updated 1/10/16)
This week the employment report will take center stage.
Trend Following Models:
My long term models are Bullish (warning issued).
My medium term models are Bearish. (Turning Bullish)
My short term models are Bullish.