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February 2, 2012
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Tomorrow morning, prior to the stock markets open, Non Farm Payrolls will be reported along with the Unemployment Report. This number will guide the markets for one day but have little long term impact. In 2012, volume has been missing. This is mainly due to the lack of buying by institutions. If institutions are not buying, we should all be aware and on alert. The SPDR S&P 500 ETF (NYSEARCA:SPY) is trading at $132.62, +0.15 (0.11%).
I have said it before but will say it again. The $133.30 level on the SPY is the master pivot. One week ago it was tagged. Since then, the markets have not hit that level again. As long as we do not take that point out on a closing basis, I remain slightly bearish, regardless of the light volume float.
The only thing that will slam the markets hard is an eruption out of Europe. Something that shocks Wall Street and the world. As of now, economic news is a one day event and mostly factored in. As long as the markets stay below the $133.30 level on the SPY, and have no major news from Europe, expect a slow steady consolidation pull back. Should the markets close above the $133.30 level, they can easily head to $135.50.
Gareth Soloway
InTheMoneyStocks.com
