THE FIRST READ

Markets have gotten trashed the past few weeks as all the news of late has been bad. The SPX is down more than 7.5% for the year and about 12% in the last three months.

In addition with the SMA 200 @ 1,112 and the SMA 50 @ 1,119 the Death Cross of the 50 going under the 200 is about to happen - probably some time next week unless something really big happens soon.

Traders will continue to short rallies and equities will have a tough time making progress to the North.

The good news is that equities are stretched to the downside being about 7.5% below the SMA 200 and 8%+ below the SMA 50.

And here we go with more bad news as jobless claims are worse than expected and futures head south again with ES -7 and NQ down about 13.

Good news- tomorrow is NFP day and I suspect no matter how bad the number - if today is down to flat - it gets bought.