Ahead of the open, (31-01)

As the calendar flips from January to February on Wednesday, the market continues to exhibit resilience as month end window dressing offsets all else.  As Greece wasn’t a concern over a week ago in this view, Portugal’s eye popping yields are also not a ‘panic’ situation as it’s not (Italy or Spain =true contagion).  Today’s sharp market drop at the open to SP1300 was open season for dip buyers wanting to put January’s rally onto their books for exposure.  SP 1306 was defended as the market edged up from this base in the afternoon closing at ~1315 level negating any real technical damage. 

In all, what was said a week ago still holds true as market meanders (FOMC or not), “ ..dip a little or overshoot the resistance some (10-15 SP handles in either direction)”.  A range bound trade with little selling pressure as it’s been for >1.5 week still persists.  The question is what ground breaking catalyst exists to bring buyers up to the plate in early February to end this holiday –like trading.  It seems everything “good news’ from economic data to earnings to European stability is priced into the market (to SP 1333).