Tuesday, August 16, 2011

Premarket Weakness But Should be Ok as Long as S&P 500 Holds 1175

Markets are weak today, in part consolidating a large 3 day run, but also reacting to some weak European GDP data.  I mentioned last week we had a large range on the S&P 500 from 1120 to 1175.  That was broken to the upside, so I'm going under the guise of resistance turns into support.  As long as that 1175 level holds, things should be ok in the nearer term.  The S&P 500 still remains far below the 200 day moving average so if we can 'ignore' Europe for a while longer there could be upside in the mid 1200s.  But as those who have followed along the past 3-4 years, you just never know when things will matter and when they can be ignored.  None of the issues have really gone away, although the ECB is placing a huge band aid on Italy and Spain.

Disclaimer: The opinions listed on this blog are for educational purpose only. You should do your own research before making any decisions.
This blog, its affiliates, partners or authors are not responsible or liable for any misstatements and/or losses you might sustain from the content provided.

Copyright @2012 FundMyMutualFund.com