Yesterday's new unemployment claims moved below 2,000K - and the market viewed it as a success (the datapoint's downtrend continues). Sure, the June figures will likely keep getting better, just as May was better than April. Today's non-farm payrolls will likely take a cue from surprisingly strong Wednesday's non-farm employment change, and beat expectations.
That means the economy will be perceived as being on the mend, putting a floor below any temporary S&P 500 downswing we might see shortly - regardless of the daily chart's bearish wedge.
There are other reasons why I think stocks will be relatively well-bid over the coming weeks -you'll find them covered in today's regular Stock Trading Alert.
But it's the current risk-reward ratio that I don't view as really favorable to jump in again on the long side immediately.
Stock Trading Strategist
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