Weekly Watchlist 8/3

Going into August the SPX is sitting just a bit below that 1000 mark and we have a gap still waiting below on the ES around 975. The jobs reports is out friday and whatever the move is into the report, look to fade the other way. I am still bullish and think this market is going higher until it shows otherwise. Although we could pullback a bit here to fill that gap, especially since the closes on Thursday and Friday were not too inspiring.

In the chart above I slapped on some fibs from the previous move down from mid-June to mid-July and as you can see we have retraced more than 127.2% of that move. The next target above is the 161.8% retracement which would bring us to about 1010 in the SPX. I like to use fib extensions to project price targets based on the previous move. This is a great way to stay objective and have a realistic target set.

Watch the euro to see how it acts around 1.43 and if the dollar index can't hold 78 this week, it could be off to the races in the major stock indexes. I still see no reason to be calling the top in this market.

The watchlist:

Longs>>> AAV, IVN, RT, IGT, EAT, PNC, TIE, CME, TV, JCP

Shorts>>> BA, NOC, MCO