Ugly picture as the S&P 500 breaks the 200-day moving average and the March low | Forexlive

It’s a waterfall in stock markets right now with the S&P 500 down a whopping 82 points, or 2%, to 3915.

Technically, this is an ugly one and exactly the kind of thing you would expect to see if non-farm payrolls was strong. The thing is, the report hasn’t been released yet so you don’t have the fundamentals to back up (admittedly) bad technicals.

So what’s a trader to do?

Assuming even odds of a strong/weak jobs report, I think you buy the dip here. All the weak hands that rushed to the sidelines today will rush back in on a soft jobs report.

If the data is high? That’s certainly a problem for stocks and 50 bps will be much closer to fruition. But do rates need to go beyond 6%, I don’t think so. And a strong jobs report still means a strong economy.