Employment Days will often occur in conjunction with a strong price move because the employment report is frequently viewed as an important piece of economic data. Still, it has been quite rare to see the employment report lead to a large gap down that never fills during the day. This happened on Friday. When it has occurred in the past selling has generally continued into the next trading session. This is something I last showed in the 9/6/11 subscriber letter. An updated list of all instances is below.
Since the beginning of 1997 not only have all instances closed negative, but intraday drawdown has been larger than intraday run-up in every case. Traders may want to keep this in mind today. (Of course fighting against this is the recent tendency of the SPX to change direction every day. An up close Monday would mark the 13th day in a row that SPX has changed direction, leaving the streak as the single longest ever – it is currently tied with a 1994 streak at 12.)
As usual, it should be an interesting day..