We discussed in our last post how the market was ripe for a breakout. After the breakout from the 1225 level, market has retested that level on Tuesday, and has rallied over the last couple of days. This is a good sign. However, we are still under the 200-day moving average.
A better-than-expected Nonfarm Payroll number tomorrow morning can boost the market above its 200-day moving average. We should keep close eye on the 1270-1280 range. There can be significant resistance there. Either way, I have a slightly positive bias, but with caution. I will soon post some conservative options strategy ideas for the rest of the year.