The word of the day was ‘apprehension’. The retail sales data this morning was another shoe drop for the market. But the market really could not decide which way it wanted to go. In the end we ended the day very close to where it started.

Last night I said that the market was like a coin standing on its edge. Today that coin flipped over and landed right back on the edge again.

The apprehension of the market today was due to the monthly unemployment report that will be issued Friday morning. Tomorrows data is likely to move the market significantly, the question is which way.

The chart of the S&P 500 E-mini futures shows that it is right back at the 905 region which is a Fibonacci price level. If the market takes the unemployment report badly then we will drop back below once again. Or, if the data is received with a more favorable reaction then the Fibonacci level will serve as a launching point.

We still have a channel that we are in which is important. Should the S&P 500 break below the lower channel line then selling is likely to be intense. We have to wait for Friday morning to get an answer.

S&P 500 E-Mini Futures

S&P 500 E-Mini Futures - Chart 2