The market is down 1% following Friday’s disappointing jobs report but has bounced off its lows as we head towards the second half of trading. The talking heads are debating if the news means a slowdown in the economic recovery but we are more interested in the charts.
The bears were able to crack the first wave of support and the bulls are trying to hold down the second wave as they look for help. The selling pressure has been broad based, as all of the S&P sectors were lower to start the session.
The good news is that we are short the market and we have had a busy day ringing the register on a few trades while opening up new ones. We aren’t ready to go “all-in” with a ton of put option trades because we want to see more damage but we have started quite a few plays that we believe are going to do well over the next 4-5 weeks.
As we head to press, the Dow is down 110 points to 12,949 while the S&P is lower by 14 points to 1,383. The Nasdaq is showing a decline of 29 points and is at 3,051.
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