Election, Fed meeting and unemployment report is the catalyst of the market this week

We will have another rally to S&P500 1200, or as high as 1220 before the election and Fed meeting on Wednesday. And I think the market will take a short break to digest these few months gain shortly after this rally. The fact is that a rally with an angle up that is as steep as this just can’t be sustained. A rest will most likely take the form of a mild correction first. It will bring the market to the first support 1170, then 1150 and 1130.

 However, until the SPX closes at least below the 5 WK EMA, which is 1169.35, the direction remains up, and not a short play.