The market has become so technically oriented you really wonder some days if news matters. This morning we had a jump to about S&P 1038... then ISM Services (which is the only major report of the week and most likely the 2nd most important report in the US right now) come in quite weak versus expectation. The market sold off for about 90 seconds, down to 1035ish, then a richotet right to S&P 1040. Why? Because everyone knows we have to get to 1040.... the charts say so.
As of this typing we have sliced through 1040 as if it did not exist and popped to 1042. So from here we can once again use 1040 as a pivot point. As I wrote in the weekly summary, if this holds you have significant upside potential, perhaps 30 points to S&P 1070ish before any real issues arise. Hence one could place long oriented plays with an understanding they are to be retracted if 1040 is broken.
But again, one of these days where it just seems technically oriented computers are going to reach levels they were programmed to hit, news or no news.