Waiting on the employment report
There is no change on the daily or 60-minute charts, both of which are currently bullish. SPY has been up 14 of the last 19 trading days with the ETF moving from ~109 to ~114 over this four week period (up ~4.5% since December 9th). Even though one could make the argument for short-term overbought conditions, there is clearly more buying pressure than selling pressure right now. Overall, a rising price channel is taking shape over the last five months with support around 107-108. With SPY currently in the upper half of this channel, it is closer to potential resistance than support.
On the 60-minute chart, SPY broke triangle resistance and then worked its way higher the last three weeks. A last hour sell-off pushed the ETF below 112 on New Year's Eve, but SPY bounced back immediately in the New Year. A channel has taken shape with support around 112.7-112.9. This is the first level to watch for signs of weakness. I am not going to get trigger-happy on the bearish side though. The bigger trend remains up and still holds more influence. Don't forget that the employment report is due Friday before the open.
