S&P comments from the firm

As in the attached research note on the S&P 500, the index is sitting at the lower end of its support zone. Given the index is already qualified as oversold (ie. down 8% from its’ peak) it is even more important that it hold. If the rally off the bottom is still intact then an 8 % sell-off to support should be met with enthusiasm by buyers. If buying doesn’t materialize down here then that tells you a lot about the psychology of traders and then we would likely see the market continue to drift lower. It is really important for the bull argument that the market make some sort of stand here.

Given the summer months and many pm’s and traders hitting peak vacation time (July to August) we would expect trading volumes to taper off a bit making liquidity a bit of an issue.



posted by Peter Greene