For Friday I am expecting a possible rally believe it or not. Jobs data due out premarket will be the story of the day. In my opinion anything less than 500k jobs lost in Dec and less than 7% rate is bullish and you very well may see a nice bounce in the markets into the weekend. Of course if we get a nasty surprise we could just as easily go to 880 as a first stop.
On the charts we are setup nicely to rally because today we came down to the low 890s and that is just beyond the 50% retracement of the rally from last week. If we can hold that retrace level around 890 this market can really start to tear. And a better than expected jobs number just may be that catalyst. We'll see.
On the upside I could see us moving to 963 as the next swing target if we start the leg higher. For Friday the pivot point is at 902 so my idea would be to see how we open (we are almost surely going to gap one way or the other after "the number" comes out). If we gap higher I would like to be a buyer of a partial gap fill or retest of the pivot.
I think we could easily see 916 if we go up. There will be some resistance in the 916-920 area. That's a 50% retrace of the move down from Tues. If we get over the 923 level then we should see some real buying. So anything can happen Friday, just be ready to play either side once the trend establishes itself.