Broken Glass

You declared you would be three inches taller
You only became what we made you
Thought you were chasing a destiny calling
You only earned what we gave you
--The Who

On top of out-of-left-field concerns last nite came re Hungary's solvency, this morning's job numbers disappointed. As soon as the payroll numbers hit the premarket tape, futes lost about 2%.

Things got uglier from there, with major indices down 3% or so on the day.

When gazing at the chart above my first thought is, boy, glad I'm not a day trader. These big daily reversals have to be jacking up the stretcher count.

My second thought is that this is an ugly chart. The major indices are once more in precarious position on the back of today's sell off. We're once again perched on support reflected by the Feb lows. Textbook technical analysis suggests that support weakens each time it's tested (as layers of demand are stripped away each time). We've now been down here four times in the last month. As noted by the 'whiskers' on the candlestick chart above, the previous three times we bounced intraday for a temporary reprieve.

That didn't happen today.

If Boo gets his groove on from here, things could get ugly.

position in SPX