The markets are shaky this morning following concerns in Euro-zone growth and the jobs report that saw initial jobs claims jump back up over 465,000. Consensus estimates was looking for a number around 450,000, so this is a little on the high side.
Expect a gap-down at the open with key levels on the SPX possibly coming into play. If SPX drops below 1131, this will likely empower the bulls and you may see increased selling. When we’re this close to testing support, I usually don’t make a trade in the morning, but instead watch for the money makersto make a direction move and then I follow.
Don’t forget, Existing home sales numbers come out at 9am eastern with estimates at
4.050 M. If this number also disappoints, I will likely look to add to the overall market short side along with builders and banks.
Check out the SPX and trendline reversal on Tuesday. That was our sign to lighten up on longs.
See you in the boom factory. We’ll look to find some long plays if/when the market rebounds from morning gap down.
