Thursday the markets gapped up and roared early on to hit a high of around 890 on the SPX. We finally saw a break of that pesky 875 resistance I have been talking bout nearly everyday it seems. However, the market was not able to hold it and sellers pushed it down sharply as the dollar had a nice up day and bonds caught a bid revealing a more risk averse appetite from traders. Overall the SPX made new relative highs not seen since early January then proceeded to reverse and close BELOW yesterday's close. This is quite bearish for the short term at least imo.For Friday the pivot is at 871.75 and that should pose some decent resistance on the ES intraday so I would be a seller into any move to low to mid 870s. It will be tough to get back over the 875 mark for now and until we pullback a bit more then I wouldn't be adding any net long exposure. I think if we fail to get over the pivot in the morning then we could see a nasty selling day back to 850 as a first target where there is an unfilled gap. Trade safe.
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