THE SLOP

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-

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.