Editor's Note:

The rally in the major indices has stalled at technical resistance. Now the S&P 500 is nearing the top of a bear-wedge pattern. While I am surprised stocks did not see a sharper sell-off on Friday given the jobs data I remain wary. A close over 1130 on the S&P 500 might change my mind. Otherwise I am suggesting readers wait for another correction. Look for a dip toward 1040 or the 1010 levels on the S&P 500 before considering new bullish positions.

Chart of the S&P 500 with a bear wedge pattern: