Thursday Watch

Hey, Team!
After a V shaped bull run, we’re not at the end of the month and a little over extended in the energy sector, which carried us here. I will not call the top here, but I remain a little cautious.

On the positive side, there were a lot of stocks showing strength either in the form of basing or breaking out. Additionally, the Russell 2000 was pushed up strong today – a sign of risk on.

RUT finds new high:

However, SPX failed resistance:

We also have a lot of economic data being release tomorrow that could shape the day before it ever even starts:

Jobless Claims
8:30 AM ET

Chicago PMI
9:45 AM ET

Factory Orders
10:00 AM ET

Not only that, some believe this run up is just window dressing: MarketWatch

One analyst said what’s known as “window dressing” by portfolio managers, an attempt to improve the appearance of quarterly statements by adding to certain investments, also helped.

“The upside pressure on the market is mainly due to the need to reduce cash before the end of the quarter,” said Marc Pado, U.S. equity strategist at Cantor Fitzgerald.

So, simply put, i’m neutral to bullish into Thursday’s action, and probably neutral to bearish on Friday.   Stay nimble and take those profits!