Another day, another record-high close; where is SPX heading next?
The six month chart of SPX is shown below; yesterday's close of 1885.52 was well above the previous all-time closing high of 1878.04 back on March 7.
SPX 6 Month Chart:
As of this writing, futures are trading relatively flat. The release of the ADP Employment Report does not appear to be moving the market much - yet. The report indicated that the private sector added 191,000 jobs in March. At these record levels it's anyone's guess, in my opinion, if the rally and move closer to 1900 will continue.
There is significant economic news being released over the next couple of days:
10:00 am Factory Orders
10:30 am EIA Petroleum Status Report
8:30 am International Trade
8:30 am Press Conference by Draghi regarding ECB Rate Decision
8:30 am Weekly Jobless Claims
10:00 am ISM Non-Manufacturing Index
8:30 am: Monthly Employment Situation
One item that I inadvertently omitted last Friday is the ECB European rate decision and subsequent press conference scheduled for 8:30 am Thursday. If the ECB decides to launch its own QE program, we could see 1900 very quickly.
As long as the market is within the guidelines, I do plan to enter an SPX Credit Spread weekly position for the April 2 cycle on Friday. I will wait until the dust settles after the monthly payroll report before entering. As always, if the market moves up or down one standard deviation, the trade will not be entered. At the moment, a one day standard deviation in SPX is 13 points.
I will post entry details when the position is opened.
I am also planning the monthly Iron Condor for the May cycle on SPY sometime next week. I will outline suggested entry strikes in my weekend update.
As always, trade carefully and stay keen on your risk management.