Monday Fade on the Way?

Here's how we're trading the potential "sell" setup.

Technical Edge — 

• NYSE Breadth: 74% Upside Volume

• Advance/Decline: 71% Advance 

• VIX: ~$25.25

I’m no economist, but after the Fed’s hawkish tone on Wednesday, the stronger-than-expected jobs report didn’t help matters. I don’t like when we enter a “good news is bad news” rhetoric, but that is where we are with the labor market. 

With the CPI results due up on Thursday, it will — as usual — be a huge focus for investors. 

S&P 500 — ES 

Keep 3705 to 3710 circled on your charts this week. If it continues to hold, that’s a win for the bulls. But it will be a level that the bears desperately try to break. 

On Friday I said, “If we see 3815 I am a seller.” That’s the 50% retrace, but now we also have the declining 50-day moving average at ~3810. 

The Trade: