The market staged quite an impressive rally (after holding support at the 1260 level) over the past few trading days. The attached chart shows where the market closed on July 07, 2011, the day before the release of June Payrolls numbers.
With SPX hovering around its prior resistance, it would have needed a solid job growth picture painted this morning to further this rally. With the dismal data released this morning, one should seriously re-consider their long positions at this juncture.
It might be prudent to move to the sidelines and get longer again when SPX moves above the 1350 level again.