After every big move, we will see a pullback or consolidation.
As we have experienced big moves in the last month and NFP is due out tomorrow, now is a good time to take some profit. That is what looks to be the case at the moment.
We have been awaiting a pullback on S&P 500 so it would retest the breakout zone and use it as support and springboard to provide confidence in this bull market. If it fails to hold around that zone then we could see further weakness. That support level is around 3400 and price is about 75 points away from there.
Nasdaq does not have any good levels of support to test due to the strong trend minus pullback since breaking out of 11,000. So this alongside the 50ma (just below) would be the support zone, if it gets there.
Dow can be dismissed as it never broke into new ATH and has lagged through this market recovery.
So what should we do now?
At the weekend, when everything is closed, we will be able to assess the market without any emotion or bias.
So, maybe take some profit and manage some trades. We were standing aside anyway due to NFP tomorrow so there is not too much to do until then.
I was training one of the new members today and happen to mention that the markets are likely to have a pullback due to the dumb money recent buying.
So based on todays training and recent weekend webinars, we can assume what we are seeing is the removal of the weak apples.
Bear in mind it is a holiday on Monday in the U.S. so a long weekend and selling today is quite reasonable.
Ignore the noise and go enjoy the prekend.