A Resolution in Europe as Earnings Season Begins?
Friday was the first day without the Dow closing up or down by triple digits since September 23 as volatility has been at extremes since August. The announcement over the weekend about the possible coordination and bank bailouts in Europe could calm things/take prices higher, at least for the short-term. Tuesday after the close though is the beginning of earnings season (^AA^ is the first Dow stock to report) and this will ensure that most of the week will continue to see large moves.
Today the market is neutral territory with both the Country Fund ETF Universe and the Main ETF Universe having 2-period RSI readings around 60.
The above is from Larry Connors’ Daily Battle Plan.
To learn more about the Daily Battle Plan, click here for more information.
Larry Connors is founder of TradingMarkets.com