Ahead of the open, (20-04)

....8 SP handles down today, 6 handles yesterday and Tuesday’s big rally is cut to about ~8 handles.  The loss of momentum following the rally is hardly a surprise and neither is today’s whippy 1,370.30 to 1,390.46, trough to peak day.  As noted post rally, “The day was not quite perfect and probably suggests last week’s volatility will continue for a little longer.  Surrendering some gains before a try at SP 1400 is probably in the works short term as a lack of direction persists”.

Today, although the Spanish bond sale was well received, it met the speculation here,…”it likely won’t be a catalyst to solve this 1370-1400 SP as conviction on both sides is lacking”.  Basically, market rallied on the Tuesday’s ‘bill’ auction as sentiment improved and negative related headlines were shrugged off since.  Markets proceeded to ‘sell the news’ as this auction going off okay had become the expectation in the last 48hrs.  Euro composite slid and yields rose once the auction was closed.  Unfortunately, besides Spain woes likely to continue, market is beginning to focus on upcoming elections (France, Greece).

All in, quite a few things to cover regarding earnings, eco’ data, EU debt crisis, but will wait to do it over the weekend.  It will likely be quiet on Friday with little to disrupt the 1370-1400 range.