Euro trash talk...

Really, there's not much else that can be extrapolated with regard to today's last hour jittery close.   We did begin the day with some enthusiasm and a channel high around 1189 in sight, but first the 1177 break needed to hold.  At these levels,  the market would use any excuse (it was a lousy, silly one) to correct as the odds were stacked ‘technically’ against the Bulls.   So, in our view this was more technical than what came out of Trichet’s silly lips.  We’ll see if the Bears can muster any follow through Friday after a disappointing finish today.  Still, short term top talk will start anyways no matter the trade outcome tomorrow.

Considering EPS season is coming fast,  we possibly got a glimpse of things to come.  BBY  gave investors something to cheer about as the improvement in outlook cheered many technology stocks up as did QCOM preannouncement.  

At this point, as much as we like the prospects of this market, we are eager to see some better prices.   Is today's action signalling some short term weakness ahead?   Is performance chasing done into Q end?   We aren't so sure yet and we’d be happy to pick up some shares and help out if we dip more.   Out of all the groups on our screen, commodity group reversed the steepest toward the end.  Simply, the high beta momo’ names always come up for sale first.   It'll  be interesting to see the kind of follow through they get after today's late day sell action.    Technology group, on the other hand, seemed to be holding up much better in comparison.   This is the group we'd be paying more attention on in the short term as BBY's earning can be a good tell on how rest of the tech earnings will fare in the next few weeks.

Bottom line, today's action is nothing but a technical event.   We simply have to respect this market and give it some breathing room before the real catalytic event (NFP report) hits next week.