Market Outlook for Friday, August 5th with Ben Lichtenstein

“It wasn't so much yesterday as it was the last few days. When you see that type of high-energy movement after a news release or a Fed announcement or something like that, [it's easier to understand]. The activity that we saw was fairly unexpected, and that really catches a lot of people off guard--a lot of traders, and a lot of the price models have to be reevaluated. That takes time to do, so it's not just kind of a one-day event, if you will. This could carry on for a couple of weeks, solid."

"I think that some of the reaction to the [jobs] number is going to be a little bit of noise at first--somewhat chaotic, at first--and I think we'll have to just wait and see. The real play, in my opinion, will come once the pit session opens and we have actual trade--day session trade."

"After that, you really go so far back here--you're talking back at least a year--to find price levels. I tend to feel when you're looking that far back, some of the support levels don't mean as much as people attribute to them. The stopping price has yet to be determined on this extreme vertical development to the downside."

"I think we're in the midst of a longer-term mood change in the market. I don't anticipate a V-bottom type rally off this. It's tough to tell whether we're going to see continuation of this, and follow through. For the most part, the market has really exhausted a lot of energy in this move."