Goldman Sachs about S&P

S&P – Important to watch given the developing Eurozone backdrop. It’s difficult to pick specific pivots, but in terms of simple levels if the market makes a material daily close back below 1,345-1,344 this would seem to warn of a loss of upside momentum and at least increase the risks of a period of range trading. As discussed in the Overview section above a very important question at this point seems to be how long broader risk appetite and correlated markets can hold up given the developing picture in some of the larger peripheral Eurozone markets.