Morning Call: Market Look to End 6-Day Losing Streak
I am a Tactical Strategist who tries to be objective common sense approach, but the more I examine what’s going on in Europe and the potentially spiraling problems, the harder it is for me to be objective. The structural problems have not been addressed and the firewalls are breaking down. The trust, that was hanging by a thread between members, is being tested once again.
This can get very ugly. At this point markets are trying to hold this 1340-1345 S&P zone, but I find it difficult to believe that will be the bottom of this corrective process. Traders having success are either micro scalpers or have a longer term conviction on individual companies. This is a dangerous game but everyone has different timeframes and risk tolerance.
Futures are climbing into positive territory this morning, they are trying to muster some sort of oversold bounce, but there are not many believers out there. European markets did start to stabilize today, which will help the cause. Spain’s move to nationalize its fourth largest lender helped to stem the selling pressure. Weekly jobless claims fell 1,000 to 367,000.
The SPY pivot from yesterday is $134.49 (S&P 1343). Bigger support is $133.60-134 (S&P 1335-1335). The more compelling area is S&P 1320-1322.
Resistance sits at 1360-1363 (SPY $136.60-136.80). The spot that will be tough to get through is 1370-1373 (SPY $137-137.30).
Futures are higher despite at 7% after hours drop for Cisco (NASDAQ:CSCO) following earnings, which included weak outlook.
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