While the S&P is still within its two month trade range, it did break down and close below its longer term trendline and 50 day sma/ema on Friday. The limited buy side interest after the slide into midday Friday was a concern and the bias is weaker this morning in the wake of Asian and European declines. Initial support is in the 1365/1363 zone with the two month range close/intraday lows at 1358/1357. First level resistance above the flat line (1369) is at 1372/1373 followed by the 1376/1377 zone.
Friday Summary: A firmly negative start to the day with steady losses continuing into midday. Market participants had taken something off the table over the last few days in the wake of the week long 4% surge into Tuesday and in front of the pre-open jobs report. Discretion did prove the better part of valor as the well below consensus non-farm/private payrolls triggered the sizeable retreat. The Dow paused near its 50 ema (13011), while the S&P and the Nasdaq Comp pulled back to the vicinity of their Mid-April close lows but a narrow lateral drift not far from the midday lows persisted throughout the afternoon. The weakest performing sectors on a percentage basis included: Crude Oil USO -3.9%, Oil Service OIH -3.6%, Steel SLX -3.2%, Software IGV -2.5%, Solar TAN -2.5%, Mining XME -2.3%, Energy XLE -2.3%, Semi SMH -1.3%, Coal KOL -2.2%, Healthcare -2.2%, Technology XLK -2.1%, Ag/Chem MOO -2%, Networking IGN -2%, Biotech IBB -1.9%, Internet FDN -1.8%, Retail XRT -1.7%, Housing XHB -1.7%, Materials XLB -1.7%. Groups on the plus side included: Silver SLV +0.4%, Gold Miners GDX +0.4%, Gold GLD +0.3%, Utility UTIL +0.1% and safe haven Treasuries.
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