Like I said the 800 area is pivotal as well and if this market is as strong as it shows signs of being then we need to see a close back over 805 and then start seeing more up 5, down 3 type of weeks instead of the reverse. We could spend some time even consolidating in this range as the 50 day ema is now flat and not showing much direction.
Economic data this week is fairly light and includes:
Monday- Existing Home Sales
Wednesday- Durable Goods Orders, New Home Sales
Thursday- Jobless Claims, Q4 GDP
Friday- Personal Income and Spending, Michigan Sentiment
As for Monday, we are gapping up Sunday evening and look to open higher in the morning. If the gap is less than a 100 Dow points then we will probably attempt a gap fill. If we stay over the pivot point then they could push this thing higher and surprise some bears. But I will start neutral and watch the 15min chart to gage the directionally bias of this market to start the week. The pivot is the line in the sand and it is at 770. Trade safe.