Before the Open (Feb 5)

Good morning. Happy Friday.
Employment numbers are out. Here they are:
unemployment rate: 9.7% (lowest since August)
nonfarm payrolls: down 20K
At the time the numbers were released, the Asian/Pacific markets had already closed down across the board with stiff losses. Europe was trading down across the board, and futures here in the States suggested a moderate gap down open for the cash market. This of course coming off the single worst down day since the March bottom. After the report, futures initially fell further but then bounced. Currently the S&P futures are down 2 points.
If the market were left alone, I’d say the uptrend which began last March was over, and at the very least there was another 5% down movement coming. But the market isn’t alone. It’s had help from the Fed which has been a big buyer. In fact the Fed has been the biggest buyer and #1 reason the rally went as far as it did. The tools I use tell me to expect lower prices, but my tools don’t account for a source with unlimited money who can buy at any time for no reason at all. The Fed is the ace in the hole.
My short term bias has been down two weeks and most likely it will continue to be after today. At this point in time, the only bullish scenario is another bloody day to match yesterday. Such horrible back to back selling days may bottom out all the indicators again and lead to a bounce. Absent a washout, more downside is coming. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers