Above is a chart of Sep S&;P futures. It could break 100 handles from this level and still be in a bull trend.
This week we have a lot of financial info coming out, culminating with Friday’s Un Enjoyment Report.
Although this number is a pale imitation of an imitation of itself compared to Pre-2001, its still a widely followed number. I won’t get into the argument of how it doesn’t represent true un employed. How it doesn’t account for those discouraged workers who have stopped trying for a new job; it doesn’t account for the increasing # of disabled workers (at last count more than the entire population of Greece–http://www.cnsnews.com/news/article/10962532-us-disability-beneficiaries-exceed-population-Greece
Fact is we’ve been on a hell of a good rally and are just over due for a correction.
That being said, I am not going to fight the bull trend if there is another 100 handles left in the S&P rally, or another 1,000 pts in the Dow.
IF we make new high settlements on Friday, my guess is that we’ll continue to trend higher.
In fact, we could have a 1500 pt break in Sep Dow or a 100 handled correction in Sep S&P’s down to 1575 and still be in an uptrend.
So, Stay short: Use your protective buy stops. This week could be pivotal for the next 6 weeks of trade.
Remember: A good portion of Europe shuts down for August. Ditto for a lot of fund mangers who have vacation plans on their minds.