SPY CHarts 5/29: Big Swing in SPY

Welcome back from the holiday.  I am a little sick to my stomach.  No I didn't eat anything bad over the weekend.  The Big Swing in the SPY and in the markets overall had me a little sick.  But lets recap what it means.   The price swing on the SPY was due to one,  the market reacting to China and the stimulus they will be enacting to support the economy over there, the other swing was due to the Euro trading below $1.25.  That is an important level for the Euro, it represents a two year low for the Euro.  Things I believe are much worse in Europe than some think.  Political uncertainty is playing into this puzzle prominently and with Greece still undecided about what government they will have in June this is going to cause some fits and starts in the market and if Greece defaults we will see the market tank. 

Spain's banking system is a mess and they need help badly.  Spain's bond yields are spiking and as bonds in European countries like Spain, Greece, and Italy spike that usually spells some form of tanking in our markets.

The technical lay out of things is still shouting bearish for now.  The down trend we have been in for the last few months has not subsided.  The rally we were expecting last week made some progress today with many of the major indexes up, including the SPY.  But that doesn't change my outlook, there are some stocks that have stalled their rallies and if others follow it is not that far off before the market stalls and resumes a downward move.





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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