SPY Chart 4/23

The mood was set this morning when the SPY gaped lower on the open this morning and closed below $137.  What is beginning to happen is the bears are gaining steam in the market.  The gap lower is still with in the range of the low we set on the 10th of April. but it still suggests that their is continuing selling pressure.  I you are bullish it might be best to stay out of the fray for another week or two.  If the low of April 10th is breached it can mean that our next support level is at $ 134 - $135.

Price action right now is volatile and not impressive enough to over come  the strong resistance we have in place  between $139 and $135.76.



The ideal place for getting back into more bullish trades is break out above resistance or let this drift down to solid support.

Mostly what continues to drive the market is the rising rates in Spain with Italy not to far behind Spanish yields continue to hover around 6%

Italian Yields

Spanish Yields

Earnings season is now in full swing and even though it has not been disappointing and on the whole most companies have made a profit.  It still has not been enough to overcome the European Jitters. 

Market Outlook:  Neutral to slightly bearish

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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives