Today’s drop was refreshing after the endless run up, but I wouldn’t be surprised to see 1216-1228 on the SPX to get retested which was the previous resistance of the old range. Time wise, we can use a few more days of down to sideway consolidation. Yesterday’s high of 1256 may get tested again in 4th Quarter.
There also was a nice move in GLD and SLV on potential massive European printing to solve the debt crisis from the European Summit tomorrow. Poor earnings from Netflix (NFLX), First Solar
(FSLR), 3M (MMM) and Cummins (CMI) are severely punishing the old momentum favorites. AMZN will join the casualty list after hours and may lead to more sell the earning reaction tomorrow.
