Reaction to the consumer price index and retail sales this morning was mixed. This is a market that just feels like it wants to go up. Any prices above 1200 and we have to look back to Sept 2008 to get any sort of volume guidance. The 1200 price level will be key. It may reject hard or break through to new highs. Be very careful with shorting 1200, wait for a clear sign that sellers are overwelming buyers. Yesterday afternoon’s turn around to the upside on increased volume shows the market wants to move up. The emerging markets were leading the way overnight. Earning season is starting and we are beginning to see companies beat expectations, again… So my bias is up, but remember we are trading here. Make sure order flow and your trade setups support your trading. The market will do whatever it will do, just be prepared to trade with it. There is a lot of volume clusters below making it very difficult to find clean trading areas. The next test of 1200 should tell us which way the market wants to go today.
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