Saturday, September 24, 2011
($SPX, $SPY) There is a tremendous amount of uncertainty about the European situation and we jumping around constantly as each new headline or rumor hits. While many market participants aren't very optimistic about a solution they are also afraid of being squeezed by whatever talk emerges from the G20 meeting this weekend.
There are plenty of negatives out there and the technical picture reflects it. After the breakdown in early August, we have been bouncing around in a wide trading range for more than a month. We tested the upper resistance levels a couple of times on rumors and news that Greece was saved once again, but those moves didn't hold and the selling this week took us right to the bottom of the trading range around 1115 to 1120 of the S&P 500.
We held that level yesterday and managed a very weak oversold bounce on light volume today, but we are in a very precarious position. The testing of the support is weakening it and I don't believe the market will be able to do much to the upside until it breaches support and produces a capitulation event of some sort. Too many folks are hoping this level will hold, and the market always likes to crush any hope before it turns back up.-R.Shark
There are plenty of negatives out there and the technical picture reflects it. After the breakdown in early August, we have been bouncing around in a wide trading range for more than a month. We tested the upper resistance levels a couple of times on rumors and news that Greece was saved once again, but those moves didn't hold and the selling this week took us right to the bottom of the trading range around 1115 to 1120 of the S&P 500.
We held that level yesterday and managed a very weak oversold bounce on light volume today, but we are in a very precarious position. The testing of the support is weakening it and I don't believe the market will be able to do much to the upside until it breaches support and produces a capitulation event of some sort. Too many folks are hoping this level will hold, and the market always likes to crush any hope before it turns back up.-R.Shark
Cramer on $SPX, $SPY
Oh man, true bear market action today.
"Don't be short ahead of what might be a deal this weekend over in Europe."
Believe me, there's not much more to it.
This is short-covering on rumors of Merkel getting her hands dirty or the IMF stepping up or a French TARP or a Middle East investment.
We don't get that? I think we go right back down Monday.
"Don't be short ahead of what might be a deal this weekend over in Europe."
Believe me, there's not much more to it.
This is short-covering on rumors of Merkel getting her hands dirty or the IMF stepping up or a French TARP or a Middle East investment.
We don't get that? I think we go right back down Monday.
($FXI) Marc Faber about China
"If we define a bubble as excessive credit growth and artificially low interest rate, then China has had a gigantic bubble. Now, will it collapse or will it just slow down, that is a different issue but some sectors of the economy will collapse."
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