On the number this morning, the Dow Index Futures DJZ… broke from 9986 down to 9907 sharply, on the first minute after the number…At that point DJZ drifted lower to its day session low so far at 9874, then proceeded to do a classic F/U rally to all the traders who got short in the hole on the bearish fundamental numbers… In the long run, it may be right to be short stocks, but in its typical fashion, the market punished the herd…rallying from 9874 all the way back up to a day trading high of 1007…125 point swing trading range…Unfortunately, the market always breaks lower 3 times faster than it rallies… The hundred point break took 2 hours to recover… Important tip to remember…. As for the S&P, we saw the same degree of volatility, as these charts basically mirror one another…
In the grains, we had a continued sell of, with SF (Jan Beans) opening at 972 and jumping 12 cents lower to support around 960.. If that level does not hold, the next good support is at 954 and then the 940 level..
I think the bears, who have been in control all week, will try to paint the tape lower for the weekend.
Good Trading