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Here is how I’m going to decide what I’m doing tomorrow. If the market is going to take a bullish tone, we will gap above 1004.09 on the SPX. Today carved out another level @ 1003.24. Again if the reaction to the jobs report is bullish we should open above these numbers, above the 21dma on the SPX as well. This should then continue higher all day into the close. Look for a test of 1019-1025.57 on the high side. The new highs pattern I’ve been yammering about will probably happen.

If we break lower than these numbers…1003-1004 or open below say 1000 on the SPX, I would be very cautious. I personally think we will go higher, but that is not important.

I was 100% long yesterday and cut it to 50% at yesterday’s close. This morning while the market was negative I moved back to 100% long into NDX and RUT 2x longs. Today was an average gain of around 2.5% in those funds, I’m too tired to get exact calculations, but it was a great trade as the market acted exactly according to my analysis – While the whole world was calling for an immediate move to SPX 979 or much lower, I was calling for a test of 1004 first.

If you want to read about my individual trades, check out my twitter feed. Big winners were ABX calls and GFI calls.

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