SPY 112.4 on Target but Watch Out for a Pullback

Wow! This rally is relentless. SPY has completely blasted through my 110.35 resistance level, however it is currently stalling at the 110.77 gap resistance. The 112.4 gap is a huge gap and I want to increase my long position ahead of the fill but I'm worried about a pullback especially given that SPY gapped up and is set to open ~110.6 after closing at 109.47. The gap was based on better than expected employment numbers. But if you scrutinize the employment numbers then notice that they really aren't much of an improvement over the previous report. It looks more like the forecast was overtly bearish. There are two interpretations here: SPY is thus in a corrective mode and the stock market is saying that SPY should never have dropped from 112.4 to 104.x this past week so it is rallying to correct the price. Or the unemployment report is serving as a smokescreen to shake bulls out this morning. Upon reading the news if I had no other stock analysis skills then I would be inclined to buy- which would set up the perfect opportunity for bears to sell.

So once again I'll have to examine the breadth and price action at open to determine fully where SPY is headed. Still I expect to see SPY 112.4 by sometime next week. Any pullback that takes place today is just a shakeout and an excellent dip buying opportunity.