What no party?

 Unemployment is worse then expect and the market sells off!  Just last month we had a nice rally and celebrated high unemployment.  This time I expected unemployment to be higher, so to celebrate I  bought party hats, made punch and pie and a mix tape. Now the market doesn't like high unemployment and sells off.  Come on market your sending me mixed signals here!  I guess I will celebrate being net short!

Some key area's to watch going forward.  Notice the Critical support level for the bulls is its from 1025-1017

The 1020-1025 area was the break of in August that started the last leg and top.  If this level cannot hold it would be very bearish.  There is also a short-term up trend from the middle of August in this area.  The STOCH may show oversold but the fact we broke the 200EMA means it can stay low.  For a more accurate oversold reading wait for the 19EMA to get below 20.  When price is below the 200EMA, STOCH can act different then when it is in an uptrend, so use additional confirmation of an oversold condition. 

On the daily chart, the uptrend appears to have broken.  That is BEARISH!  If this hold the new trend is now down.

The 1025 area may be support and 1017 is the 50 EMA.  The 20EMA acted as support previously and the 50EMA might do the same.  1022 is monthly 200 MA, since this is a longer-time frame MA is may provide strong support.  Watch if it breaks though.

Resistance going forward is anything above 1040 and with this much overhead supply it may be hard for the bulls to get above it.