“It’s hardly a touchdown’, played out all day as the markets breakout was put under ‘review’ and thus spent the entire day in the red. A pullback into the ‘red zone’ (1280-1260) was negated (possibly only for today) by the special teams (dip buyers) coming in near the close. Until earnings flow picks up, the market will remain in conundrum.
Wary - Today’s was something discussed here recently…”… inflation number this week as it raised concerns of ECB hiking before Q4.”. 01/07. At that time we were also watching if Bernanke signalled ‘hawkish’. Today it was Trichet/ECB making a ‘hawkish’ turn and soaring the Euro and making the markets think a hike before Q4.
As it’s shaping up, earnings season will have many ups and downs. Although the lack of pre-announcements this Q should signal a better Q4 over Q3, it’s really a mixed bag so far with CSTR, INFY big disappointments and a SAP (Software) upside surprise. Considering, SPX ~1280 has been an excuse to take some profits, (watch for) don’t be surprised to see this pass to stocks and a sell on the news earnings reaction.
Shadowlist