Thursday the market sold off all morning and the after session brought in a huge move with the markets literally jumping off a cliff and rebounding to recoup some of the losses. At 2:35 the market started on a fall that was one like falling off a cliff, the market did recoup those losses by the close on futures, but it was one wicked drop. We still closed very red and the ride down was one that triggered stops on any long folks were holding and definitely struck a nerve around the world. The cause is said to be a fat finger erroneous trade, but there is no fat or skinny finger pointing at exactly who or what at this point. The after hours did bring news out of the NYSE and Nasdaq about busting trades. Any trade on the NYSE and Nasdaq at 2:40-3:00 that traded more than 60% off will be canceled. Volume left a distribution day across the broader markets. The TRIN closed at 1.43 and the VIX at 32.80 the highest close since May 15th, 2009. Gold rallied $18.70 to $1193.70 and oil down $2.86 to $77.11 a barrel. Into Friday the market is likely to be very jittery and slow to do a lot with conviction. If this was really an error, retracement of the move is likely to come in. This left the market with divergence, oversold conditions and about any extreme you can think of. Even if this last move of the day had not come in, the market was already blood red and heavy enough so that would have closed ugly even without the additional move off whatever really did cause it. I’ve seen a handful of trading errors in my career and it is always some HUGE order that stirs the pot that causes the problem, but in addition to those type of moves I’ve also seen fund usually a hedge fund of some sort liquidating and causing huge moves. This is by far the largest single day move though. So we can assume this is another odd event and move on from it. I would expect some upside early on and for the market to have a hard time finding any momentum. So I’ll look for a choppy trading day and for the Job’s data that isn’t likely to be front and center with this going on. Greece is still hanging over the market and until we see a vote on a bailout, which is suppose to come Friday we won’t know where we stand. Keep in mind it could fail like the TARP in the US did the first time around. The market didn’t like that as I recall, so that could deliver a rollercoaster. Once we have the upside move the market may sit and even chop lower. Usually these moves retest, that low is along way off so it won’t happen in a day is my thought on that. But it is likely to happen over a period of time. Economic data for the week (underlined means more likely to be a mkt mover) Friday 8:30 Non Farm Employment Change, 8:30 Unemployment Rate, 8:30 Average Hourly Earnings, 3:00 Consumer Credit. Some earnings for the week (keep in mind companies can change last minute: Friday pre market AES, CF, HUN, SUG, TTI and nothing after the bell. SPX (S&P 500) closed -37.75 at 1128.15. Support: 1111.46, 1094.96 200dma, 1082.01. Resistance: 1142.80, 1160.97-1170.36, 1186.84