Another day another green close for the the S&P index futures. From Deep red to bright green was the trend today, the 1205/1195 back and fill channel is holding. Though today was just that a back and fill day with tepid volume, though volume did pick up as usual on the sell side down to 1186. Buyers stepped back into the ES per the HFT operating handbook @ precisely 1186.
Now that SPAIN Has Been CUT TO AA- FROM AA BY S&P & Placed on OUTLOOK NEGATIVE the futurs are seeing a 2 point red ‘blip’ down to 1195. How long will this last? god only knows. What price has told us is 1190 was a sticky level during the cash session and you can bet will be a difficult level to break into the evening. below 1190 you have the next stop @ 1185. If we get their we might see profit taking into asia and europe open. If the euro continues to attract bidders and or covering equities as well as commodities will see a rise in prices. Oil has lead this move up so watch it closely, currently WTI is sitting on the 84 handle.
Trade the downside while you can and ride those momentum stocks till the cows come home because the only way to do anything in this market without overnight risk is via spastic spurts of buying and selling disregarding fundamentals or conventional wisdom. Oh and RAJ received 11 years, yeah he had to return over 100 million though im sure he has 200 million more.