Before the Open (Jul 7)

Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed. India gained 1.9%; nothing else moved much. Europe is up across the board; there are a few moderate winners. Futures here in the States point towards gap up open for the cash market which will be above the high of the week.
Entering this week, the market was in need of a rest, and that’s exactly what it’s done. Dips have been bought, rallies sold. The ranges have been small and volume light. For the most part, the market has corrected with time, not price. Whether it has corrected enough to support a continuation of the short term trend up is not something we know. I’m guessing not, but the market doesn’t have to wait until the “all clear” signal is given.
Tomorrow, before the open, the latest employment numbers get released. Given last week’s move, the market is working with a cushion. It can absorb a stiff down day and remain healthy in the near term.
My stance remains the same. The charts tell me there’s more upside coming, but I’d prefer more sideways movement before attempting to leg up again. Also, I’d prefer a technical breakout, not a news-induced breakout…hence I don’t want to see a big move up tomorrow. I’d rather the market drift into the weekend and then break out next week on its own. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers