Flash Crash Territory
Two of the six markets that we apply the flash crash criteria have triggered their warning signals, the Mid Cap 400 and the Transportations. If the S&P and Dow stay around the levels where they closed yesterday they will trigger today. The last period where the warning was open was the 5/16/11 to 6/30/11 period.
Update before open:
The employment numbers are encouraging. With the technical indicators being what they are, it will be interesting to see how the market performs. The fact that the dollar has held important lows over the past week is also encouraging. It may just mean that US deficit reduction and the fact that we are still the biggest economy in the world, a more negative impact will be felt by other countries as our austerity boils over.