By Global Macro Monitor
It’s kind of useless, in our opinion, to be looking at the technicals as the market approaches the big life or death event. The EU debt plan is either going to be taken positively, in which case the S&P500 will break through the 1230-1234 resistance level; or it will be negative and the market will breakdown, most likely to new lows. No muddle through scenario, in our opinion. The Eurocrats either make it or break it.
Until then, however, here are some key support levels for the S&P500, our global proxy for risk: 1195.74 (.236 fib retracement), yesterday’s low at 1191.48, the 50-day moving average at 1175.41, and the .382 fib retracement at 1172.62.
This is a tough market as it reacts to Euro tape bombs and can grind up your capital like an IN-N-OUThamburger. Betting on bureaucrats to do the right thing can also be hazardous to your financial health. Good luck.
