The news abroad also failed to offer much cheer. Talks a mere day earlier on providing Greece with even further bail-out funds did not help prevent Moody's from cutting Greece's bond rating on Wednesday further into junk status. The rating cut to Caa1 was brought about due to the increased risk of restructuring its debt, failure to hit budget reform targets, and strong uncertainty over its ability to grow its economy.
Thursday will kick off with last week's initial jobless claims, followed by factory orders for April.
Then comes the doozy: Friday's jobs data. Nonfarm payrolls are expected to increase 175,000, which is not enough to really get this economy on the roll. The recent gains in jobs so far this year has struggled to keep up with the number of new workers entering the jobs market, let alone been enough to make a dent in the nation's staggering unemployment rate.
Also out on Friday is the Institute for Supply Management's nonmanufacturing index for May.
Wednesday's session, due to its sharp losses, was a really nice one for the intraday trend-trader. The first setup took place nearly right out of the open when initial congestion on 1 minute charts broke to the downside. The remainder of the session was followed with a series of 5 minute bear flags of different lengths, but all held the strong five-minute 20-period moving average resistance level. This continued right into the closing bell before the market hit support at previous lows on the 15 minute time frame.
In a single day the market had reclaimed all of the gains it had striven for in the previous week's worth of trading. The earlier lows did hold well, however, as the market finally exhausted itself into afterhours trade and it will likely continue to hold throughout Thursday as well. Although we should expect a narrower range and greater potential for back and forth trade on the five-minute time frame.