Equities are trading near the flat line with oil service, biotech, metals, junk and emerging markets leading while gaming, reits, homies and trannies lagging.

NYSE internals flat while NDX/SPX a little to the red;

Gold higher and over $1,200;

10 year Treas note - rate back up to 2.97%;

The much discussed DEATH CROSS just happened as the SMA 50 is now under the SMA 200- I think more importantly the support and resistance areas:

SPX 1010 area is the level where we got a nice bounce yesterday and I suspect any time we approach that level we will bounce- of course resistance at the old support area of 1040-

Kudos to Greg Valliere- for not towing the GOP line and calling them on the carpet for not extending the unemployment benefits - bottom line it hurts the economy and puts more folks into poverty.

Its very unfortunate - but politics has turned into I just want my party to win no matter what the ramifications-



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.