12:19 pm EDT:  So far a range day, testing the overnight highs and lows.  If the range is broken to any side, it will likely be to the upside.

10:01 am EDT:  The ES blew through the preferred sell zone showing no weakness.  If longs are to gain control today, 1060.75 should now hold, and a long entry is 1062.00 to 1064.00, not holding below 1060.75.  However, there is danger of being whipsawed, so we would not buy if NYSE $Tick dips below -850 on a retracement down to this area.    We would only short on a move up to 1071.25 to 1074.00, followed by negative $Tick readings of -1000, indicating a rejection of daily R1 or R2 (depending on calculation on day-session-only or combined session).

The Precise Take – Employment Situation disappoints into end of week.

Leaders Analysis:  30 Year T-Bond futures are still clinging to support, as gold is similarly at resistance.  Mostly consolidation ahead of the Employment Situation report this morning.  (After the report, they have now reversed.)

Medium Term Update:  The strong Productivity report yesterday temporarily quelled job fears and allowed equities to break through significant resistance.  However, this morning’s report has disappointed with both the unemployment rate up to 10.2% and another 192,000 jobs lost.  Though we were surprised yesterday by equities strength, they have not been able to discount bad news as of late, and we would be surprised if they can shake off this morning’s news.  As we have written, there is little news next week until Friday, so any trend that begins today, should have light resistance unless something unscheduled comes about, which is always possible.

Trading Today:  The ES has found support at yesterday’s closing VWAP in confluence with the combined session pivot (1055.50 to 1057.00).  Given the weak report, we prefer to be sellers from 1061.00 to 1063.25 (yesterday’s point of control to yesterday’s settlement).  Today looks like it will be volatile and we must be prepared for…

Continue reading here.