I'm Out

I'm now flat and will try to go short sometime Tuesday or Wednesday.  It is clear as day that we have more work to do on the downside, although we may have an up day or two.  Normally you don't see an 8 point gap up become a gap down overnight.  That usually means that level, 1072, is close to a near term top. 

The nonfarm payrolls should be another bad number, and expectations of a bad number will cap any upside this week.  I will be leaning short for the next several weeks.