Yesterday the Dow slipped below its May 25th lows but the S&P did not. Nor did the NASDAQ composite. This sets up some near-term positive divergence. The S&P futures held up overnight, and some FX weakness that I noticed last night in CAD and AUD was erased entirely. The Euro has had a strong move to the upside as well.
It would appear a bounce is unfolding and that 1325 could be a target based on some simple Fibonacci (38% retracement).
Should the S&P violate its May 25th lows, 1294.70 would become the next target.
It sounds as if Euroland is trying to reach a Greek bailout agreement by Friday, and the jobs number feels like it's been beaten to a pulp and a surprise could occur to the upside.
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