S&P Emini 500 Futures gapped up 2.00 points with the 1059.25 open.  Heavy pre market volume, approximately 300,000 contracts, hinted that today might be volatile, The index did not disappoint.

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Market reaction to the 8:30 jobs report was rapid.  The high for the day of 1062.00 printed in the first 5 minute bar, then a sell off began.  By 10:45, most of the day’s move had happened.  A descending 3-4 point deep trading channel developed over the next 3 hours and dropped the index another  2.25 points to the day’s low of 1041.00.  After retracing a few points, the close came at 1045.25, off 12 points from the prior close.  The daily chart shows the low resting at about the 20 sma, and a break below may signal more downward movement.  2.3 million contracts changed hands, higher than average volume on the first solidly down day in the last 17.