Sunday, July 05, 2009

Technical Picture - Jobs Data Disappoint

A disappointing jobs report prompted sellers to knock stocks sharply lower in the first few minutes of trading. The jobs data hung over the markets like a bad smell. Even after strong factory orders data was released, stocks lingered in an extremely narrow trading range until the S&P 500 finally slipped below the psychologically significant 900 level in the final half-hour of trading and finished at session lows.

Investors should prepare for a deeper correction if the mini H&S top on the S&P breaks its shoulder line. On a measured move basis, expect price to drop approx. 50 pts.

VIX breached support but has reclaimed. If S&P breaks, look for increase in volatility.


NYC Trader said...

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Jamie said...

Thanks NYC,

blog rolled you back.

New-Temple: said...

lol, i like your honesty..."in the heat of the trade, I wasn't thinking smartly."