Cool Down

Fire and ice
You come on like a flame
Then you turn a cold shoulder
--Pat Benatar

Decent sized sell off today ahead of tomorrow's payroll numbers. Technically, the ball is still in Hoofy's court. Our bovine buddy would argue that we're merely taking pressure off of overbought conditions. And the picture suggests that he's correct.

A near term sign that Boo might be taking control of the helm would be a break below the 50 day MA at about SPX 1020, which also roughly corresponds to support from the uptrend line defined by the March lows.

Stochastic oscillators suggest more downside room before things get too oversold in the near term. This is another feather in Boo's cap.

A repeat of today's action in the next coupla days would also raise eyebrows.

position in SPX