Market comments for Aug. 5th

Friday will be a very impotent day for several reasons. First, we had such a huge sell-off today, that I had no idea when I wrote my last post, that the Dow would test the 11,500 level Thursday. That was a very large drop today and we clearly went below that support level. As far as I am concerned, we have more downward pressure to go. I will post some charts tomorrow for you to digest over the weekend.

But the Unemployment rate report Friday will set the stage for whether we decline strongly or briefly rally. A 9.2% Unemployment rate ,while not good, will calm the market somewhat. But a 9.3%, or worse, 9.4%, will drive the market much lower because it will show an accelerating trend that will unhinge traders. Stay tuned for the Unemployment number and charts to follow for the weekend.

Happy 50th Birthday Mr. President!