STOCKS SELL OFF ON JOBS REPORT -- RISING RATES AND OIL ARE ALSO WEIGHING ON STOCKS

STOCK INDEXES GAP LOWER... Stocks are selling off sharply following this morning's September job report which came in a bit stronger than expected.   That may be a case of good economic news being bad for stocks because it keeps the Fed on its path of higher interest rates.   The daily bars in Chart 1 show the Dow Industrials gapping lower today.  The red boxed area shows three trading days surrounded by Tuesday's up gap followed by today's down gap.   That leaves a small "island reversal" which is a bearish pattern.   Today's selling also keeps the Dow below its June low which was broken last week.  Chart 2 shows a similar negative pattern in the S&P 500.

NASDAQ THREATENING JUNE LOW... The tech-dominated Nasdaq market is leading the market lower today.   Chart 3 also shows the Nasdaq Composite Index bearing down on its June low.   Technical odds favor that previous low being broken.   Technology is the day's weakest sector probably owing to another jump in interest rates.    Consumer Discretionary stocks are also showing relative weakness.    Energy remains the only sector in the black today along with another strong day for crude oil.   This week's OPEC decision to lower crude oil production starting next month has boosted energy prices and stocks tied to them.   Rising energy prices are also inflationary which is probably contributing to higher bond yields.   All in all, that represents a negative combination for stocks.