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US Jobs Report Will Dictate Trading

But when I look at the market you're over [the 18-week average], that means there's a bias in the market, as long as it stays over the 18-week average of closes, as I have a bullish bias and that's one of the filters I look at...and I then come on and I can look at a chart and say, okay, what do we have? I got lucky. I correctly predicted that this peak was going to happen. It was right over a Bollinger Band –  I didn't think it would hold up. 

And when we came down here, what I looked for – I said, 'Well, if, that ends up because you had bounced so much as the top and the bottom, maybe there's a 50% correction is where the market's going to end up as it tries to figure out what to do next.'

The bigger story: markets like to fight at the 18-day average of closes. That's very important because on a daily chart, the bias is still up. So if you were to get under $2038.30 and close under that number especially, you'd have a pattern of lower highs and lower lows and have your first bearish pattern in the market.

Conversely, you've had a nice rally, you've pulled back and now the market's got approved to be bullish that it can hold here, stay above that 18-day average, and build on that if it wants to go higher.

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