Early in the week, discussed market’s only silver lining was holding March low’s, but if that was to break we’d see low SP 1320’s. Not only has the break occurred, but now the market lies lower at a band of support in the 1290-1300 as the selling has accelerated with shorts becoming more comfortable. The negative developments accumulate in Europe as faith in ECB powers dwindles, but if that wasn’t enough US data (Philly Survey) today was lousy adding to the negative sentiment.
A temporary rebound is increasingly closer as world markets have suffered enough this week. A starter might be headline risk of Greek polls results, plus we’re heading into the G8 meetings. Eventually, an upside lid at this week's SP1340 break level will be present as ‘longs’ caught in the downdraft will look to take profits.