See the 5MIN chart for some meaningless additions. (No change in price levels made).
Bad Jobs Report on Friday was predictable based on the bearish market action for the month (but not always the case). So I was looking for an upside surprise of the report to lead to a strong bounce (UP) on Friday, while a bad report would not have resulted to a major drop since it was expected. But because the Jobs Report was very bad (coupled with Europe), there was just no way to see just an average drop on Friday, hence the huge drop.
The tendency of traders is that when market drops as it has recently, they start calling for a collapse. As has been the case since the bottom of March 2009, we have seen many drops that have been bought right back up. As a result, folks start the "market manipulation" talk while ignoring the obvious (charts) because of personal bias as to what they want to see rather than what the market is saying.
So let the charts speak for themselves and don't be caught looking only UP or DOWN because the market moves in 3 directions (up, down & sideways). Take it a step at a time and you will never be surprise.
Though the bears are in control at the moment, the chart setup is looking a lot more bullish than bearish. So expect a bounce to take place.
