Internals were reasonably positive yesterday and cumulative ticks finished at +50,000 which is a pretty good number. However, it was very light volume yesterday so you'd have to say that although the tone is bullish there isn't enough conviction to drive it higher.
In today's session whilst we started off pretty weak with the worse than expected job's number, the internals as has been the case of late is improving and cumulative ticks are positive even though we are down on the futures. The market is having difficulty clearing this 1125 area on the ES which translates to the previous swing high. You'd have to say with the way the market is behaving and the amount of time it has spent at this 1120 level (past 3 trading days) we are at value right now. Tomorrow's job's number may change that of course so there might be a big move in the offering but I still think the market wants to go higher and is looking for a catalyst. I'd be inclined to take some profits off the table right now and just wait and see what the market wants to do before establishing any new positions. Bonds still bid on the weaker jobs number as you would expect.
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