Initial jobless claims may have hit a five-year low this morning, but there's a lot of fear about Friday's jobs report. Estimates have been coming down, and no one seems to believe there could be an upside surprise, or if there is it will be revised downward.
Bears are already saying this could be the report that finally forces the markets to take a breather. They're already scouring the markets for signs of technical breakdowns: The Dow Transports, for example, peaked in March and has seen a series of lower highs for the past six weeks. The small-cap Russell 2000 also peaked in March.
The bottom line is that the S&P 500 is up 10 percent this year. Despite all the concern about low-growth and high-profile earnings misses like Merck, earnings growth so far is about 4 percent for the S&P 500, with revenue growth about half that. I've said this before: With the Federal Reserve continue to backstop markets, investors seem to be happy with earnings growth of roughly 5 percent.
(Read More: Should Investors Fear the Fearless Market?)