Editor's Note:

Sometimes the best trade is no trade at all. Markets remain very overbought but they continue to resist any selling attempts. It seems like investors are waiting for something and it could be the GDP report due out on Friday (or even the jobs report due out August 7th). I still think the 1,000 level is acting like a magnet on the S&P 500 but it could also be tough resistance to break. Our bias is bullish but I'm suggesting readers wait for a pull back toward the 950 region, which as broken resistance should offer new support for the market.

Chart of the S&P 500 index: