Concerns about China’s central bank devaluing its Yuan sent the market in a tailspin in the overnight session. Thursday’s S&P short covering rally failed just short of the previous day’s low, then sold off all the way down to the overnight session low.

Thursday evening will probably be very volatile as China has suspended it’s 7% short circuit breaker rule, which was tripped just 20 minutes into its previous trading session and trading was halted for the second time this week. In addition US weekly jobs data will be posted Friday morning:

Trade ideas for Friday:

Depending on where the S&P opens on Friday, acceptance above Thursday’s rally high at 1946.25 could lead to a ferocious short covering rally, as the market could be dangerously short. While NYSE Volume was high at just over 5 billion shares it could mean weaker short term players are getting too short.

Alternatively, If the market trades below Thursday’s low it could keep the current down trend intact.

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