The market reaction to jobs reports is similar to Fed announcements – – you can never really tell what’s going to happen based just on the initial move. When the dismal jobs reports tumbled out this morning, the strong move in ES and NQ disappeared in no time. However, the market decided that bad news is great news, and it’s been up ever since.
I’m not going to pretend this is good news. In fact, it kinda sucks, because it’s wrecking the formerly clean top. We’re pushing deep into the pattern, diminishing its importance and utility. I’ve lightened up even more.