· Mon: Personal Income and Outlays 8:30 ET
· Mon: ISM Manufacturing Index 8:30 ET
· Fri: Employment Situation 8:30 ET
Also pay attention to Tuesday’s Pending Home Sales Index at 10:00 ET and Thursdays Jobless Claims 8:30 ET.
A move lower seems likely, but we are still setting up with some long positions because we feel the risk/reward is such that a sharp rally to the upside will occur at the most unexpected time. The next level of support is not clear cut so be prepared for a strong move in either direction. Keep an eye on the VIX for confirmation of the move (a move down with a spike in the VIX or a move up with a retraction).