Before the Open (Jul 1)

Good morning. Happy Thursday.
Every market in Asia/Pacific and Europe is down. Futures here in the States point towards a small gap down open for the cash market. This comes off a day where the S&P sliced through support in the 1040-1050 area and closed at a new 8-month low. The last level I’m watching that may bring buyers to the table is SPX 1000 – it’s the middle of the Bollinger Bands on the monthly chart and the lower trendline of the falling wedge on the weekly chart. The bulls don’t have much wiggle room here. If they don’t take a stand soon, the entire market could crumble.
Tomorrow the employment numbers get released 60 min before the open. In the near term, they could push the market in either direction, but beyond that, I don’t think the numbers matter. The market sometimes goes in phases when it trades as it wishes and nothing else matters, and I think this is what we’re faced with right now. The market is going to do what the market wants to do, and even big news items only have the ability to move prices in the very near term.
We have a 3-day weekend coming up. Normally today would be dead because of tomorrow jobs report and then tomorrow would be dead (after the first hour) because of the holiday weekend. I’m not sure we can assume this.
The most bullish aspect of the market right now is that nearly everyone expects lower prices, nearly everyone expects a double dip recession. Can everyone be right?
The trend is down until it’s not, and as I’ve stated in the past, I’d rather buy a leveraged reverse ETF than short an individual stock. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers