PRE MARKET REPORT

We are writing this before the fake job’s number.

Futures flat. More damage done but keep in mind, major indices are only down a smidge. Not even close to real damage being done. We just think that at best, things get tougher and at worst, the next level of support will break…which means more to go.

Bounces can happen at any time. Our overall thought is that there is more time and price to go. For sure, there are issues:

More new lows than new highs on NYSE and NASDAQ yesterday…wow!

Leading growth names remain under pressure.

SEMIS still under pressure…but the good news the 1020 breakout area holding.

Could be just the summer doldrums. Could be just a point in time where market has to rest. We will continue to advise based on sector as about 50% of the market remains in bearish phases of differing price and time.  And if you want to know what a classic bear looks like, check out the XOP (Oil Exploration). Notice a break of the 50 day average on Jan 30 with every visit to a now-declining 50 day average sold off.

If futures move off a lot off of the fake job’s report, we will send out another missive. We think we are near-term oversold here…which doesn’t mean a lot.