Following the Script

The market is pulling back off the nonfarm payrolls high and we're probably halfway through the first phase of the pullback.  We should continue to weaken for the rest of the week into Friday, as traders cut risk ahead of earnings which will come out in full force starting next week.  There is strong support in the 1400-1410 zone, so that is probably the area to buy/cover.  I see very little probability that we get back to 1460 before we hit 1410.  No positive catalysts so de-risking will be the name of the game.  And there is a lot to de-risk, we really got too much buying into "good news" over the past month.