DJIM #21 2011

A market dry of potential upside catalysts was easily stopped at the May down channel top ~1348 last week.  Unfortunately any chance of consolidating to try a move higher is negated by all the European peripheral countries and their issues that reared it’s head into Friday’s trading with more vengeance. ie. Spanish elections and hidden debt, Greece ..blah blah.  

The market simply has nothing post earnings to watch except the noise across the pond.  Of course, as Europe boils, it escalates the currency trade with the Euro getting hit as we saw on Friday after equity divergence finally showed up during the week.   Bulls/longs hands are tied and trying to defend the April gap is inevitable once again to begin the week of May 23rd.

Hope is a countertrend rally of the Eur/USD starts at ~1.39 where a base may exist coinciding with a test of the gap in equities to give recovery a chance.  All in, nothing positive to add to start the week.