The SPY has been twice caught by its five-day moving average, probably indicating system traders/ bots being aggressive in closing short-targets there. Otherwise, most internals are fairly weak save Up Volume, which I think is still being boosted by rotation into the Financial (XLF) complex, although I note that Discretionary Retailers (XLY) are also doing relatively well today in spite of the earlier reports. On balance, the more times the 5-dma is challenged, I’d suggest it becomes increasingly vulnerable to a break — though obviously tomorrow’s formal jobs report holds the key for the week.
