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The 50 EMA lines did indeed turn the markets downward today. The jobs numbers will be out premarket tomorrow morning and the market will be in a vulnerable position when those numbers come out.
There is a positive side to this story though as can be seen in the charts above, the SPY and NASDAQ closed at their lows of the day but the VIX came back down some into the close. This disconnection could have several causes but just the fact that it didn't close at its high of the day will give the bulls a little more confidence tomorrow.
I would say that if the job numbers are really bad one should expect a real nasty smack down market opening. However, the recent market sentiment has been shifting to the "bad news is good news" mentality that we have visited so many times before wherein investors believe that the worse the economic situation gets the more likely the Fed will have to go with a QE3 (Quantitative Easing round 3) which should lift the stock market at least modestly therefore, bad news is good news. Whether or not the investment community can go along with playing this game for a third time is yet to be seen.
Alan
