The 'soldiers are rejoining the fight' in the battle for new highs

Investors have been speculating about how the market will react to Friday's jobs report, and the result could actually be overwhelmingly positive, according to some analysts.

In fact, according to Evercore ISI technical strategist Rich Ross, the S&P 500 is poised to hit all-time highs in the long run, even with the May employment numbers.

"We're seeing breadth expand," he said Thursday on CNBC's "Trading Nation." "The Russell is outperforming the S&P, small caps are outperforming the large caps, and mid caps are up 7 percent year to date," Ross said.

"It's telling you that the soldiers are rejoining the fight here, and that's what's going to get the S&P above 2,135," he added.

Following April's jobs numbers, the S&P 500 finished slightly higher than the previous day, but remained relatively stagnant for the rest of the month.

Read MoreS&P closes at highest since November; Street awaits jobs Friday

Turning over to the options market, Harvest Volatility Advisors chief investment officer Dennis Davitt believes that now is a good time to make a short-term play on the S&P 500. Options prices are low going into Friday's employment numbers, giving investors an advantage if they bet on the S&P 500. The VIX, the volatility index that measures prices for puts and calls on the S&P 500, is hovering near year-to-date lows.

"You can buy that straddle expiring in 24 hours for $12, and that's about as low as I've seen it going into an employment number in the past two or three years," said Davitt. A straddle is an options strategy that involves buying both the at-the-money put and call of the same expiration. When traders buy straddles, they typically expect a large move either up or down.

"I think people are underweight equities in their portfolio and that is a really inexpensive way to take up a one-day bet with what's going on with the unemployment number."

The S&P 500 closed at 2,105 on Thursday, a level it hasn't reached since November.


Trades to Watch

Trader Bios


Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Sara Eisen

Sara Eisen joined CNBC in December 2013 as a correspondent, focusing on the global consumer. She is co-anchor of the 10AM ET hour of CNBC's "Squawk on the Street" (M-F, 9AM-11AM ET), broadcast from Post 9 at the New York Stock Exchange.

In March 2018, Eisen was named co-anchor of CNBC's "Power Lunch" (M-F, 1PM-3PM ET), which broadcasts from CNBC Global Headquarters in Englewood Cliffs, N.J.

Read more