Today is Pearl Harbor Day. After which, Roosevelt said, "a day that will live on in infamy." Thank you to all the veterans out there. Hard to believe it was 70 years ago today.
Markets are calm this week ahead of the ECB rate decision (probably a one-quarter point cut) coming this time tomorrow and the E.U. Summit Friday morning. Traders are expecting Merkozy to deliver a strong pony adorned with beautiful flowers. Markets will be in trouble if the Euro leaders show up on Friday with a sick donkey swatting flies with its tail. Thus, the markets wait and trend sideways.
China export numbers and other key data will be released on Friday and Saturday but the markets will not have much time to react this week. The China export data will not be pretty. This should further weaken copper as time ticks along. Retail looks very toppy here with the negative divergence ready to push it ove the cliff so it is worth watching as well.
For today, technically, watch SOX 371, XLF 12.80, VIX 33 and JJC 45.50. All are market bullish now (remember a lower VIX is market bullish), so if any of the four violate the levels shown, broad market selling will increase. For the SPX today, starting at the critical 1258 support, if 1266 is touched, the bulls will accelerate the upside. If the SPX falls under 1253, the sellers will enter the market in force driving the indexes much lower. A move thru 1254-1265 is sideways action.
The futures were buoyant in the overnight session up until a few minutes ago when things turned red. Perhaps the Euro news is not that rosie under the surface? The S&P futures are flattish at +0.10% while the Nas is down -0.12% so this hints that the bears do have a little juice, at least at the open. Watch SPX 1253 at the open.
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