Market volatility continued today as investors reacted to a weak non-farm payrolls (NFP) print and surging crude oil prices. The S&P 500 index saw significant selling pressure, with over 80% of its components trading in the red. Notable laggards included the Bitcoin Sensitive Index (-4.5%), Cyclicals Index (-2.4%), Rate Sensitive Financials Index (-2.4%), and Megacap Tech Index (-1.2%).

The NFP report fell short of expectations, with a paltry 92,000 jobs added in March versus an estimated 55,000. The weakness was largely attributed to household employment and weather/strikes, as well as the adoption of the payback birth death model.

In terms of technical analysis, the medium-term trend level for CTAs is currently at 6762. If the index closes below this level, it could unlock more supply from investors. In a down tape scenario, CTAs are expected to sell $190B worth of assets, with $63.7B coming from the US.

Despite the recent volatility, ETFs continue to hold a significant portion of the market, with their percentage of the tape standing at 43% versus the YTD average of 28%. Additionally, top-of-book liquidity remains low, with only $3mm available versus the YTD average of $10mm.