What a week that was. Broad markets catapulting higher, the bulls were out in force. Markets jumped on the Greece vote drama, Trichet pumping the euro which in turn pumps commodities and equities, and the quarter end window dressing, none of which are sustainable reasons for intermediate or long term bullishness.
SPX 1321 resistance held. Markets are buoyant in front of a holiday weekend but considering the outrageous move this week, bulls will not complain if the afternoon weakens today. The key SPX support/resistance levels are 1314, 1321 and 1329. In more detail, S/R to watch in this area is 1307, 1311, 1314, 1316, 1319, 1321, 1323, 1326, 1329, 1331.
Watch financials closely after the open since they will help gauge broad market direction today. If the XLF, now at 15.35, moves up, any amount, the market bulls are running again. If the XLF moves down, then the markets will idle along sideways into the holiday weekend.
For the SPX today, the bulls only need to touch a 1322 handle, if so, the buying will accelerate higher again to test 1323, 1326 and perhaps 1329. Futures showing that the oomph is not there to move the SPX a point or two to grab the 1322, at least at this juncture.
The market bears need to drive the SPX down to lose a 1308 handle if they expect to grab back control and start to retrace this big move up this week. 1308 thru 1321 is sideway slop. Low volume is anticipated, traders will sneak out the back door early today to buy the charcoal and propane for the barbeque. Typically, a sideways move today into the holiday would be expected.
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