So Trichet spoke and they are signaling the EU is not just going sit there and take the brunt of the US dollar's devaluation. And while they are not moving interest rates, their support for a "strong" dollar means that they will if things get out of hand. In a way all eyes will be on what China is willing to do this weekend, the fact China has the remimbi in a semi-peg to the dollar it makes Chinese exports even more competitive in the world and defeats the Obama's administration goal of increasing exports to increase jobs. So I think the market will be reacting more to what goes on with the currency than the actual number of jobs tomorrow (which are probably going to be pretty bad).
And as far as the EW count goes, we have a set up for a sell off tomorrow (on a W3) or a spike for one last rally before rolling over. I bought back my SDS position today at 1163 for a 3 point gain and I am using 1164 as the stop tomorrow. If there is a final leg, then the next resistance will be 1173. On the downside, the magic number is 1148.50. We need to close below 1148.50 to start confirming the change in trend.
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