The strong jobs number was sold leading to a crazy close with a big buy program causing a late squeeze and narrowly avoiding a two down week close, but it did leave two doji on the SPY weekly chart. Russell on the other hand still looks strong closing within whisker of new high above 83. The whole week was a roller coaster ride with a strong move on Monday, a very ugly reversal on Tuesday, a strong recovery Wednesday and Thursday and then another ugly reversal Friday. Oil is again blamed for this choppiness. There is great uncertainty as a result of the Middle East strife. In addition we have the banks breaking down with the BAC downgrade of GS and C. With volatility gradually picking up, there may be more mean reversion opportunities for active traders. I know we are again on the verge of a break down but what happens if oil isn’t interrupted and we have three straight big POMO days?
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