1/7 Weekly Commentary

Jobs Report day.  The buzz kept the stock market afloat until about 11am when the market turned south.  I bought 2% SDS near the low.   At that time I held SCO, ZSL, and 6% SDS as well as short gold futures.  I sold DX yesterday and am flat.  The market broke the SP futures 30-minute lower envelope which is the first decline confirmation.  I1 bottoms Monday close so the market has to run to the downside to break critical resistance DJI 11,521.
I sold SCO at 10.96 near the high by counting SPX and DJI waves into the low.
The rally late in the day overlapped yesterday's low so a 5 down is apparently not in the cards.   On the other hand SPX rallied and closed into intersecting M/As on a completed 3 up:

Meanwhile SP futures rallied to within 1 point of their 30-minute M/A.  The typical behavior when 30-minute M/A lower envelope has been broken (as it was today) is that the 30-minute M/A provides resistance to any rally attempt.  So I'm keeping my 6% SDS.
A word of caution, EWI is calling for new highs early next week while I've got money on I1 keeping the pressure to the downside through Monday.
The dollar finished what appears to be wave 3 and could have finished wave 4 as well.  The Euro formed a triangle in it's wave 4 position and broke out to the downside.  If the dollar rallies overnight this will confirm wave 5 in motion and help put a cap on stock upside.
Gold and silver should go the way of stocks.