First of all let’s get it straight.  The job report didn’t hammer the market today.  Big traders who have been harvesting the market saw the opportunity and hammered the market.    We tried to dodge the cobra by hedging our QQQ and SPX positions.  Just in case it wasn’t obvious the sell strength, buy weakness cobras are still in control.  Squeak.

There will shortly be a panic run upwards to regress this panic run downward.  Observe the long term trendlines and stops.

The short term buy signals in the SPX are busy being canceled at this moment, and the trading nature of the market is being emphasized.  It is worth commenting on the Qs signal here.  The island reversal, gap and penetration across the downtrendline were valid buy signals.  Closing the gap effectively cancels them, but does not invalidate the trade — for long term traders.  It invalidates it for short term traders.

We will be commenting more at length over the weekend or Monday.