Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed with a bullish bias. Europe is currently mostly up, but gains are small. Futures here in the States point towards a big gap up open for the cash market which will be above last Friday’s close and close to yesterday’s high.
The question heading into today was whether last Friday’s late day move constituted a reversal and yesterday was just a low-volume drift against the reversal or whether Friday was just profit taking into the weekend.
For now it looks like Friday’s move may actually be meaningful – it’s unfortunate we have to deal with a gap.
I guess there’s hope the European Union will provide some sort of support to Greece and it debt. Remember it was the opposite news (fears) last week that contributed to the market’s worst down day since the March low.
Here’s the S&P 500 daily chart. We’ve had some nice intraday moves the last couple weeks, but from a swing trading perspective, the movement has been frustrating. The bear flag broke resolved down but support was reclaimed within a couple days…but the gains were given right back a few days after that…but the intense selling lasted less than two days before last Friday’s late-day reversal. Now we’re getting a big gap.
I remain conservative (not aggressive). I like trading in the direction of a gentle breeze, and right now things are erratic. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers