What is important now technically heading into tomorrow’s Jobs Report?
— The upleg in the S&P 500 off of the June 24 low has hit a new all-time high today at 1704.97.
— If the SPX reacts positively to the report, and continues higher, then the next target zone is against the upper-channel boundary line, now at 1730. A 1% overshoot of the upper line projects to 1740. The 1730-1740 area should put a lid on the June-Aug upleg.
— If investors react by “selling” the employment news, then a sustained break below 1685/80 is needed to trigger preliminary sell signals that the June-Aug upleg is complete, and that a correction is likely, especially given the weekly RSI momentum non-confirmation of current new all-time high.
By Mike Paulenoff, originally published on MPTrader.com.