Good news or bad news…

Bottom Line: Good news or bad news…this tape has the look and feel as if it needs to go higher still.

We’re a few days away from both the end of the month and quarter, as well as the monthly jobs number so there’s plenty of inflection points to factor in for the near-term. This morning we see the futures firm in face of bad news, hinting that complacency remains in full bloom.

This is all coming at a time when several of the commodity markets we follow are grinding and churning, often the precursor to a major breakout (or breakdown) based on form.

We mentioned last week based on the wave structure to expect the SPX to get “range-bound” for the near-term, as the transition of a trading top matures. Call it the applying the icing on the cake before dessert is served.

Our early sense of things is that we stay “range-bound” as the balance of the week plays out. Our range forecast for the SPX is $1155 to $1180, but we will adjust quickly if necessary.

We still think the right strategy is a balanced approach, but with a bias to the short-side as evidenced by what we still have in our trading portfolio.

We’ll look for the right set ups and alert you to the changes and additions we make.