Another Day of Going Nowhere

Today's market is boring. The trading range gets smaller and the volume gets lower, which signals that many people are on the sideway just watching instead of really being active in the market buying or selling. Every one is watching closely on tomorrow's ECB meeting and Friday's non-farm payroll. The trend has come down to the 30-day moving average, which could be a nice starting point if good news come out.

If the news come out disappointing, it may trigger a short term sell-off to send the market down a bit. The first suporrt for S&P500 will be 1,380 (50-day moving average) and the second support will be 1,365 (150-day moving average).

However, on the other side, investor intelligence report came out after market closed today with 51% bullish and 24% bearish. This large variance should give us a warning that the market is somewhat over bought or we could be somewhere near the top.

When the market gets clear either later this week or after FOMC meeting next week, I will begin to clear out my positions.