Just to be clear & more direct to your question, personally, I think the R/R to go home short tonight & into the jobs report is favorable.

jobs report likely to spark a sharp move in either direction tomorrow but in a vacuum (technicals aside), I’d say the risks are slightly skewed to the downside (bearish) from a fundamental perspective: Above-consensus jobs # would add to the hawkish fed case (bearish for equities) and below-consensus would be bearish for the economy as consumer spending accounts for over 2/3rd’s of GDP.

Technically (charts), we have the $VIX exploding higher today following the recent bullish falling wedge breakout & backtest plus successful test of the uptrend line (bullish for the $VIX, bearish for the stock market) plus many financials breaking down or continuing to break additional supports following the sell signals on XLF a month ago.

However, SPY closed right on another test of the primary downtrend line & 200-day SMA today so today’s lows need to be clearly taken out to solidify my bull-trap/failed breakout scenario on the broad market. Even if the market rallies tomorrow, it will still be within spitting distance of the key support it closed on today as we head into the close tomorrow & that leave the potential for a big gap down & possible meltdown next week so not sure how many bulls will feel comfortable going home long over the weekend.

Could go either way but I’m leaning towards the bearish/down and down hard tomorrow and/or next week scenario as of now.

Your thoughts on holding these short positions overnight ( concerning the jobs report tomorrow at 8:30)

Yes, I mentioned XLF as one of my favorite shorts here on Feb 10th:https://youtu.be/n9EX0KpVqu0?t=1336

..and followed up with the chart that I posted above here: https://rightsideofthechart.com/market-analysis-trade-ideas-2-10-23/#comment-26338