Friends
Stocks suffered the fifth day in a row of losses, and today was ugly from the start. Once again, worries about Europe crept into today’s trading as futures actually looked to be slightly positive before the opening today. But as trading began, the selling started and by the end of the session the Dow Jones Industrial Average had dropped 213 points. The S&P 500 was down 23 points to close at 1358. Gold was up $17.30 to finish the day trading near $1661 per ounce. Oil was down $1.25 to close near $101.21 per barrel WTI.
Today saw the violation of technical levels with 1370 being penetrated to the downside on the S&P. That was the May 2011 high and was serving as a major support level. The question is going to be, is this just a nice buying opportunity (down a little more than 4%) or the beginning of something a little more serious? Remember, when you get a move to the upside like we had in the 1st quarter, there often is some backing and filling needed before you can forge ahead. As you know, nothing comes easy these days, so a little anxiety in here is not unexpected.
The earnings parade begins today after the close, so we’ll see how traders react to various reports. We get Alcoa today and Google and JP Morgan later in the week. Let’s see how the week unfolds. Might be time to buckle up tight.
Have a nice evening everyone.
