Pre Market TAO Thursday 7-2-09

9:16 ET AM..........The jobs report was not a good omen as the non farm loses where much higher than expected . This puts us very close to the 10% rate. Es Futures have dropped overnight to a low of 905/US Dollar is up / gold is down / corn took a big hit but oats had a huge pop / crude is down 68.16 / Nat gas down 3.72.

Today I expect SPY to gap down at open and run to last weeks range at least until Europe closes.
I will close out my short position and call it a week . These holiday markets can turn quickly so don't hesitate to take your profit.

Looks like all this indigestion will give the markets ....Green Poops

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9:40 am et...Broad market sell off all sectors are participating Spy cut down thru S3 9049 and headed to MOO (half way to s4) .....starting to see a few green lights though...
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10:10 et am...... Ok! I closed my short at 9028 ..... all xl sectors are at or around 62% fib and that is the average fib retracement for the "A" leg. Most likely Spy will trade sideways to up for the rest of the day.
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10:32 et am .....looks like spy has a little more downside I think we are waiting for the other sectors to catch up ....looks like a balancing is occurring around the 50 to 62% fib to correlate all XL sectors then we should see a move up to test or fill the gap.
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10:50 et am....... The utility, financial and staple sectors are showing some resistance to this sell off. I have noticed the utilities have been lately among the first to rally and the least to fall. I think this maybe a possible rotation to dividends and a play for higher yields than treasuries . This can draw money away from equities as well.
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12:00 et pm......looks like sectors have found there footing and are equalizing . I don't see much more downside today Europe is closed and the Spy will most likely bounce around the 9020 to 9050 range .
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2:00 et pm..... Looking at the US Dollar, this is the first week in the last 4 weeks it has traded to the top of the range. This could follow through with the safety bias the markets are starting to exhibit. Oil has moved down to the bottom of it's support zone and if it cracks next week the rest of the markets could follow. I would not be a buyer here. I am more inclined to be a seller of rally's. Moreover, I am out of the market until we see a little more direction.