The indices ended with minor gains, but we finally broke the 8 day losing streak and closed near the intraday high. The mood was panicky after the ISM Service number and may have caused a temporary capitulatory bottom. We are still quite oversold, but we have lots of technical overhead in the 128 to 130 SPY areas, not to mention a lousy economy and issues in Europe. All eyes will be on the jobs report Friday morning; a bad number may invite some buying as we get closer to FOMC early next week. If we rally into the FOMC meeting, we may set up a sell the news reaction unless there are more definitive plans on QE3.
