Into the trading week, (21-05)

The Facebook hype, including speculation of a lift to market never materialized leading up the IPO nor post the IPO morning.  The ever rising expectations off Facebook never made it here as an upside catalytic event, this is probably the first mention of what turned out to be a major disappointment on many levels.   This capped off of an awful week, SP is now  down 9% off 2012 highs, primarily due to risk appetite deterioration due to Europe.  Correction zone of >10% seems inevitable at some point as investors fear this is tougher to resolve than last year’s liquidity crisis.  Besides the primary negative driver, secondary ones are gaining traction (China growth (Steel off 20% MTD), lousy Phily survey, Washington fiscal fears).  *First ever US Flash PMI will be released on the 24th, alongside the China/ EU numbers on May economic growth.

 

All in, nobody wants to step in and defend this market making it a spectator sport of sorts.  Only question is with sentiment low at a pivot point on the SP (1292), will an oversold bounce begin shortly?.  Even if it does bounce , the market world will still wait on Greek elections and ECB neutrailzations.