The reaction this morning shows that the market has not fully discounted a bad jobs report and a double dip recession maybe back on the table. The only silver lining is that maybe this will push the Fed to act more aggressively and the volume is on the low side. We are also back in the area of higher volume support bars from the last rally. However, we are still in a downtrend and we have to respect further downside potential.Market is now working on its second failed rally after the massive breakdown in early August and the news flow seems to be getting worse. We are going to have plenty of news to sort out after the Labor Day holiday. Have a nice long weekend!
