Of course we have ran up quickly and a pullback would not be surprising. However if we do get one I think it is still a good buy in the intermediate term. The move from last weeks low of 853 to the high of 932.75 has a 50% level of 893. If we do get down to that level I think its a buy. Below the 884 area and we will have to look at more short side trades.
Econ data out this week includes:
Monday- Construction Spending, Auto and Truck Sales
Tuesday- Factory Orders, ISM Services
Thursday- Jobless Claims, Consumer Credit
Friday- Nonfarm Payrolls, Unemployment, Wholesale Inventories
Of course everyone will be waiting for the crucial jobs report Friday but bad news is already expected. Let's see how the price action reacts early this week to more volume back in the market and a fresh new year on the books. I think the path of least resistance is higher in the intermediate but don't be alarmed to see a pullback Monday and if it happens, look for buy signals on those retraces.