"Time bomb" was set up at payrolls numbers

Some people may think numbers were not that bad given the "positive" reaction SPX and other markets showed. After all UE rate is still at 9.7%. But we need to point out two important things:

• From the fundamentals POV, this charts shed some light about how "benign" this crisis is being.

• From the technical POV we can see that some very important markets reacted very negatively (showing clear risk aversion) just after data was released.

Resulting divergence btw SPX and other markets just add more evidence about the exhaustion of this bullish move. WE may see higher highs on Monday (ES1182-4 is likely), even a gap up, but I insist: red scenario is more valid then ever; moreover, when they pull the rug there will be no time to react if you had not prepared your plan in advance.


GL

Sucktor rotation

Hi guys

Someone was wondering today what the difference btw topping and consolidation patterns would be, since price action was quite flattish today. Well one way to tell about it is by looking at sector rotation since is a characteristic of all tops. This is what I found these days:




But if we look at last two sessions performance (specially today) the roles seems to have changed (rotated) We need to see continuation next week.





In brief: topping is already being produced but we will see marginal higher prices ST. Friday price action was just too easy to short as to be the real top.

My take for early next week is: they will gather more critical mass by sucking more bears with lower prices, prolly gap down. This will fuel the next run up toward new highs. Then the top may be printed.

Game plan updated.

Overall, previous game plan stays the same. We are looking for NQ 1780 and ES1085 areas to start with.
Here is a chart from earlier today.

Game plan for coming days