Calm After The Storm
We have seen a very quiet session following Friday’s massive rally across the equity index complex. Today’s action is typical after a three standard deviation move — in other words, expect a quiet session with some retracement. If selling increases, I would expect a move towards 1375, before a late-session rebound. However, one cautious note is beating in Microsoft
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PowerRating). If the Nasdaq market rolls over and sellers come back in, it could lead the SPZ toward 1363. So far, however, one has to be impressed with the ability to hold onto Friday’s rally in light of these two stocks having so much trouble.
Moving forward, expect today to just play itself out, while earnings should dominate the rest of the week.