The initial reaction to Friday’s Employment Situation report was not nearly as bad as where the SPX closed. Nevertheless, the SPX closed down some 22 handles; sending it to essentially the same level as the end of February.
Today’s Overbought / Oversold levels: 1404 / 1365. Friday’s drop in equities pushed them into Oversold levels and futures this morning are once again testing Oversold levels. With this past weekend’s European elections behind us, perhaps some uncertainty is removed along with them. Uncertainty may dissipate going forward, but until we break out of this range–more or less defined by today’s quantitative levels–the struggle for equities will continue.