There was a little more activity than I expected today, but the market finished down 5 points today to 1632. The bears took two shots at 1630 but both times the bulls were able to beat them back. The events in Syria have people a little nervous and there seemed to be a small run for the exits mentality before the holiday weekend.
As it turns out a small divergence has been built and the bulls maybe able to take advantage of the early sessions next week barring some military action over the weekend. The attached chart shows that on a 10 day time frame the level of conviction by the bears to sell this market have waned a little bit and the bulls may be able to step in here. Technicals, however, are in the same boat as pricing. Small volume means not a great tool to use. We have definitely developed a small range of 1630-1640 that everyone seems to be stuck in. We definitely get clarity next week if for no other reason than jobs come out on Friday. In the mean time, Happy Labor Day America.