Market Review 8/2: ECB Statement Falls Flat

Fast and Furious is what today was.  When the ECB announced their short term plan to deal with sovereign debt the market did not like what it heard.  Last week Mario Draghi was saying that the will do everything in their power to prevent the collapse of the Euro,  this was not viewed as doing everything and so the market sold off.  The takeway today was it could have been much worse.  The Dow was down almost 200 points intraday, but by the close we were only off 92 on the Dow and 10 on the S&P.

What i see happening is the market going into a range the next month or so.  I think that$113-$134 will continue to be support on the SPY.  I think any unraveling in Europe or bade US economic data will be met with central bank talk and possibly QE3.  Those things should keep the SPY trading above $133 into the fall.

We'll have to see how eurocrats continue to deal with the mess they have and if there is anything substantive that comes out int he next few months.




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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