If you were expecting any misalignment in the jobs report to bring us back down to SPY $134, you were correct. So far the confluence of the rising 5-dma and yesterday’s gap level are providing recent support, probably as trapped shorts from the last couple days run take a welcome breakeven exit.
I might hypothesize that when that inventory is exhausted that we see a second run lower based on net negative internals, perhaps as soon as what appears to be a pending test of the falling VWAP from below. However, I have to grant this is not a trend day, internals are re-cooperating in slope, and the VIX is falling, so I too have lightened up short side exposure to more normal levels for me. BTW, volume is completely normal, that is to say, “lightishâ€.
