Initial Claims At 500K....Good Times Not To Ensue

In previous posts I have stated that the Equity Markets are not prepared and ready for a 500K print on Initial Claims, that this would be devastating for the Obama Administration and the labor markets.

http://tradersutra.blogspot.com/2010/08/housing-and-jobs-are-key.html

http://tradersutra.blogspot.com/2010/08/waiting-on-nfp.html

http://tradersutra.blogspot.com/2010/07/this-rally-likely-over.html

Well today those very mentioned  initial claims did in fact print right at 500K. We will see if markets can hold up in the face of these depressing figures. My thinking is that the machines will try their best to keep the market at or near recent highs but we should see some institutional selling across the board later today. What I have seen of late is that the Algo HFT systems bids are finally being hit by institutions. We have seen nothing but distribution like selling since late April. 

Jobless claims at 9-month high
http://www.reuters.com/article/idUSTRE67I2A020100819