Monday, September 5, 2011

European Pregame

Your face appears again
I see the beauty there
But I see danger
Stranger beware
--Animotion

Markets not trading on Labor Day, but futes are 2% in the red in the early going, with some big US banks like Bank of America (BAC) off 5% in European trading.

In fact, it was pretty much a bloodbath across Europe today, with indexes on average down 4%. Some European banks were down about 2x that as hopes waned (again) of a EU sponsored bailout of Greece et al.


The all important DAX was clubbed for 5%. More importantly, perhaps, is that it gapped lower from August lows and never looked back. Past support is now resistance...

A date between US indexes and their August lows seems increasingly likely.


On the SPX, that equates to 1120ish.

position in SPX

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