What would make the S&P index more bullish?

....or more bearish for that matter

The S&P index is up about 43 points or 1.76% after the stronger US employment report. That is more than half of the 62 point decline yesterday. The longs breathe a sigh of relief.

However, there is work to do.

Technically, the index trades between its 50 hour and 100 hour MA. The 100 hour MA above (at 2508.67 currently) stalled the rally on Wednesday. The 50 hour MA was tested yesterday and with the gap opening today is moving away from that area. We currently trade between the two levels.

So what would make the technical picture more bullish?

Of course a move above the 100 hour MA. You can add the 38.2% at 2519.86 (the retracement and the 100 hour MA both stalled the rally yesterday). Get above, and the correction higher from the December swoon, can continue the move higher.

On the downside, should the momentum fade and longs get scared again, a break of the 50 hour MA would sour the mood for the buyers. That comes in at 2454.40 today.

Meanwhile the dollar is continuing it's run higher with the EURUSD and USDJPY extending the ranges.