Traders Turn to Italy on Rumors of Berlusconi Resignation
The market again comes into the day in neutral territory with the 2-period RSI of the Country Fund ETF Universe at 48.99. IWM is the sole pocket of strength; outside of that, most ETFs are trading between RSI 35 and 55.
The news from Greece was met positively Friday and Sunday night but has since partially reversed (as of 7 am ET). The focus has now shifted to Italy with Reuters reporting Berlusconi will resign as early as today. As each country takes matters into its own hands and replaces the old with the new, legacy issues can be addressed in a positive way and longer-term the economic health of Europe can be restored. Overall it’s the best course of action.
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