Before the Open (Jun 8)

Good morning. Happy Wednesday.
The Asian/Pacific markets closed mostly down, but there were no big losers. Europe is currently down across the board – Austria, France, Germany, Amsterdam, Norway, Spain, Stockholm, Switzerland and London are each down more than 1%. Futures here in the States point toward a gap down open for the cash market.

This comes off yesterday’s late-day sell-off which was exaggerated by comments Bernanke made 15 minutes before the close. Today’s open will be at a new low. Other than a bounce that looms due to several indicators being stretched to the downside, the intermediate and short term trends, the trends we trade, are down. Bounces are shortable until that proves to be unwise, and I’m not even interested in going long other than a day trade with the ETFs.
The market is in bad shape right now. During other moves down, there would be pockets of strength among the sector charts. This isn’t the current case. Pretty much everything is moving down. Absent an annoucement QE3 will be implemented, which would certainly excite the market, the trend is down.
At the beginning of the week, I put my downside S&P targets at 1275 (per the lower Bollinger Band of the weekly chart), 1250 (the March low on the daily) and 1200 (just above the 20-month moving on the monthly). I’m sticking with those for now. Yesterday’s close was at 1285.
Be ready for a bounce. It’s at times when everyone thinks the world is caving in that surprises happen. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers