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Sentiment Vs. Jobs Data : Bullish Vs. Bearish

|Includes: SPY, iPath S&P 500 VIX Short-Term Futures ETN (VXX)

The much anticipated jobs data was released Friday and pre-market action is pointing to a decisive sell-off.  Of course, this is based on initial reaction to the number of jobs lost, but you can read the direct release here and make your own assertions. 

You don't normally see economic data and technical data used in tandem, generally, economic indicators are longer-term compared to short-term analysis with technical indicators.  In my view, this morning's negative reaction comes at a good time for buyers.

Most traders will look to short this market next week, based mainly on Thursday's sell-off followed by this morning's negative reaction.  That seems logical, but there are two indicators that are screaming SHORT-TERM BOTTOM.  The VIX and the CBOE Equity Put/Call Ratio.


CBOE Equity Put/Call Ratio

Read the Full Labor Department's Press Release Here