Will Friday Provide Any Excitement in the Markets?

So far in 2010, volume hasn't really picked up, the markets have continued inching upwards within a tight range and new highs are being made (i.e. SPY now closed over $114). But for the most part, the market is in a bit of a limbo. Perhaps we will see some volatility this morning. The employment numbers will be released at 8:30am EST and may provide a catalyst for some descent market movement.

I want to believe the market is going down, but it is getting harder and harder to maintain this position as the markets continue to move upwards. I like to think when everybody turns bullish, the market is bound for a reversal to the downside (and vice versa when the overwhelming majority is bearish). However, I can't seem to determine where the majority lies. Most traders I know and many professionals whose opinions I read, seem to believe that a correction needs to happen sooner than later. However, those same people also can't deny that the markets and the charts appear bullish.

I have been bearish for the past several months and for the first time I find myself believing that the market is going to continue up. That immediately raises a red flag for me. If I am contemplating this, I wonder how many other bears are finally shifting their positions as well. Typically, when a pull back is over due, when market tops have formed, we don't see a reversal until enough of the dumb money has funneled in. I believe this could finally be happening as more and more people are turning bullish. So, though I see the strong potential to the upside, I try and keep myself in position to be short in the market, even if it means missing out on some profits in the short term.