SPY Charts 6/11 Situation No Win

You're damned if you do, and damned if you don't.  That is how the market reacted to the news Spain's banks were bailed out, but that had very little affect on the markets today.  Spain is in a deep recession and giving the $100 million euro is like trying to bail out a large ship with a bucket.  It just is not going to work, and investors realize that there is not going to be a quick fix.  The other elephant in the room is the prospect that Greece could leave the Eurozone and default on its obligations.  That would bring the market down like it did late last summer.

To add to the Euro woes there is plenty to be pessimistic about state side.  I was scrolling down a host of economic reports that will be released between Wednesday and Friday that could have a huge impact (Retail Sales, Jobless claims, Industrial production, and University of Michigan consumer sentiment),

If these economic reports come out with bad numbers its just going to be a massacre on Wall Street this week.  I believe today set the tone and the trend should continue.  The charts are reflecting the same sentiment. 



Two resistance levels that converge tend to be pretty solid and the 50 day EMA and resistance at $134 confirmed the market is still in a downtrend and will continue to hold the course until some other support level can be established.  Look to continue a bearish outlook this week.

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives