The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.By David Gillie NEW YORK ( ETF Digest) -- Tuesday's selloff got no help from the media with a Greek salvation story or any economic data to spin. All eyes are focused on the weekly and monthly payroll reports on Thursday and Friday. Expectations on the monthly report have been lowered 20% from the previous month so a "beat expectations" is almost a certain headline to help the market. Downward revisions of the previous month rarely get mentioned. AAPL continues to dominate the market.
A big down day like Tuesday can give us excellent insight into the market's weakest hands wiping out a week's worth of melt up.
Top performers this week
Ever volatile silver tops the table this week by virtue of its highly favored leveraged inverse. As with many commodities that reach nosebleed highs, gold became speculative and was quickly dumped on the rising Dollar. Precious metals were largely responsible for pulling down the basic materials sector, but copper has struggled though most of February as well.
The small caps of the Russell 2000 had already began their rollover before the selloff. A bear raid on them was inevitable. Although the energy mega bear hit the top performance table this week, oil broke through the $104/bbl resistance and has now retreated slightly to retest support. GAZ is the lone survivor of the major natural gas ETFs still holding onto a gain.
Although there are no oversold positions, this will be a key table to watch if the selling continues. This will show us what sectors and industries get hit the hardest. Extreme oversold conditions are also a trigger for the algorithm buy programs. Algo can't pass up a deal. Although it may not lead to a rally, we may see some short term potential pops as buying opportunities.
Even with this week's drop of 3% on PID Intl Dividend, it has not broken its upward trend. This is a sign of strength for this position.
The three ETFs at the bottom of the table are critical. Although they have not broken their downtrend they are showing gains on a significant increase in volume. This is evident on a reversal in the works. PSQ and TYP are the bears just preparing to lunge the minute AAPL spits out a bad seed.
In summary, the market is pivoting and pausing. The pause is most likely waiting for the monthly jobs number at the end of the week. In front of an election, we can be almost assured this will be a positive report despite this morning's ADP report miss (which is getting positive spin, anyway). Dips have been bought through this melt up, but these have been mostly intraday dips. We have yet to see how traders will react to a big down day.
Futures held positive going into the open being carried by Apple and the announcement of the iPad3 despite selling just before the bell. The "chatter" I hear is traders intend to sell AAPL after the expected iPad3 pop. Early trading on SPY looked desperate for something to save it -- AAPL? Oil? Greece? Anybody? Finally Greece pulled through with the "good" news of bond holders agreeing to take a fat loss. Let's see how long the euphoria on Greece holds as APPL slides downward in early trading.Follow my intraday market commentary and various other observances on Facebook and Twitter