Now we all sit and wait on the computers to see if they push us through. There used to be a time when levels like this, once broken, were traps for the obvious trade (i.e. further upside) but in the past few years we hardly ever reverse right back through a level 'trapping' either long or shorts. I assume this is due to the influence of HAL9000.
Tomorrow is the only day of the week I see any economic news that will actually move markets, so it is the only day premarket magic is threatened. As we have seen for well over a year, in the absence of news we almost always go up in premarket but generally it is 0.3%, 0.4%ish. This week has been very special since we have received back to back 0.8% days on really no news in particular.
But for now all the market is a Euro trade - the bad unemployment and retail data meant nothing ... bad unemployment hurt the market for 2 days, and retail data hurt the market for 25 minutes..
Now that $1.2250 has been broken, the next levels are $1.24 and $1.26. Since the algorithms have some sort of Euro to S&P correlation maybe $1.26 = S&P 1130 or whatnot if and when.
Looking ahead, we have end of month/quarter approaching and for those who believe fund managers stuff the market up ahead of the quarter you are bullish. Since economic matters are just a sideshow, I guess just cheer the Euro and premarket magic until July when earnings season starts anew.
(if we break S&P 1108 I'll probably throw an index trade on ti the long side for the remainder of the day at least)