Be cautious! after this short term rally run its course, a major selloff may follow

The S&P 500 index gained 0.93 point, to 1,125.59 and it closed up for a third consecutive week. Share volume was extraordinarily robust because of today's quadruple witching options expiration. With more than 1.8 billion shares exchanged on the NYSE, this session s total was more than double the average daily count for the past 10 sessions.

Investors have been somewhat encouraged by recent signs of economic improvement. But with consumer sentiment still in the dumps and a negative outlook for job growth, stocks have been drifting without much conviction.

We may continue to see strong earnings, but that's not going to get us much higher with negative news on economy as well as the weak consumer sentiment. What we need right now is the increase in job growth and the confidence of the consumers. If they have jobs and the future is positive they will start spending, as consumer spending go up economy will follow.

By the way, don't be so optimistic about the break out of  SPX 1130. It just a number. You may argue because it's a major resistance breakout. Well, sometime we have to look at it with more aspects and different angles. Market going up and it's overbought without a healthy retracement. It can't sustain this short term uptrend. Be cautious! after this short term rally run its course, a major selloff may follow.