Ahead of the open, (23-05)

Today’s vanishing follow through gains to previous days snap back rally was no surprise, if you’ve been following the daily market tribulations for the past few weeks.  The intraday action was no different than recent activity once short covering peters out and no real buying appears to take over.  Gains simply vanish and rallies lose momentum. Also, as said last week profit taking will also play a role as market climbs towards SP~ 1340.  Incidentally, today’s late turn can be attributed to yesterday’s line concerning, ..”…political maneuvering”.   as former Greek PM’s fear mongering ( prepping for Euro exit) reversed the market.  Market will move on every word from past and present EU leaders, all have some motive.

 

 

“..the rally didn’t seem that strong in scope to suggest anything other than an oversold bounce”.  All in, the above note into the trading day seemed to be justified.  Still, there is room to run in the days ahead as long as SP ~1310 holds, the continuation just won’t come from recent 'extreme' oversold conditions.  Squeezes will occur regularly on EU/ECB positive speculation, but the depressed longs will have to come back to avoid days like this.   All in, we’re back to dealing with summits, dinners (Wed night), meetings (ECB June 7) and the speculation they will fuel and more often than not, disappoint once finished.