As exciting as ‘Mayo’nnaise on pre sliced white bread!
Whatever moves happen this 4 day trading week, we won’t put too much weight into it. If today is any indication this going to be a very quiet week of trading and unless (very doubtful) a big catalyst comes along, we don’t expect to be too busy until next week which is really the start of EPS season with GS.
A positive bias remained over the weekend, but with SPX cash over 840 in premkt an influential analysts (Mayo) note on the banks crossed the wire ( see IntraDay Trader link). Futures started to weaken to high 820‘s, a slight pop at the open before a slow grind to Fridays lows of 822 on profit taking led by the financials. Mayo’s initiations were not earth shattering and we’d just say it’s a newsflow excuse to take money off table. There really wasn’t one main catalyst for the action today, just a bunch small ones that combined led to swings on low volume. Basically, we just look at today as a day to give back Fridays gains, even the late rebound is really not very noteworthy!. Breaking 840-860 is a stretch here this week with little news flow. We need volume, lots of it to crack these levels. So, as noted in Intraday Trader, 815SPX is the support this week to watch. A firm bid should originate here, if Fridays lows get taken out.
Besides Financials, Tech' was off as well (RIMM, AAPL were strong (a few positive firm comments out this am on AAPL) and a lot of it could be due Barron’s over the weekend on both stocks. Commod’s were pressured by USD$, despite positive Citi commodity comments and upgrades to mining equipment stocks (BUCY, JOYG). Still, both items are good to see.