What I'm watching this morning is whether we can stay above the 10/29 highs in the major averages. We saw a sharp drop on the jobs numbers this morning and then a sharp bounce to preopening highs early in the regular trading session. Failure to sustain a move above the 10/29 highs sets up a wide trading range and should eventually lead to a break of the overnight lows. I would see such action as part of a potential bottoming process vis a vis the momentum lows we saw early in the week. If that scenario is correct, we should stay below this morning's highs.
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