2 Week Horizon

Tomorrow's unemployment report may be the difference between a market surge that will cap off a strong week of nearly 5% gains and initiate a new bullish wave until more moderate if not sobering economic reports arrive in mid-to-late Sept... or the report could show negative job creation in the private sector (as predicted by the volatile ADP report yesterday), which would likely dent the bullish sentiment to a strong enough degree to keep the market rangebound somewhere between 1050 and 1100 (with a bias toward the higher end of the range).

Note: a wildcard to return the market to pessimistic days would be pre-earnings announcements (esp by tech companies) that would reduce their 3Q earnings expectations.

The market's stayed afloat following yesterday's monster gains by opening with continued gains on the backs of rising pending home sales and a drop in the jobless claims, and in spite of a slightly weaker than expected factory orders report (which was hinted at in the details of yesterday's manufacturing report).

Essentially, the recent run to 1050 and possibly lower were/are driven by fears of a double dip recession and/or an economic environment that will require significant additional Fed interaction. While economic reports should continue to come in moderately to slightly positive, the doomsday scenario still is a less than likely event and market exuberance is reacting as if they now believe that...at least until the next series of meaningful economic reports in a few weeks.