AMAT warning helped to pressure the technology sector after a strong open on the Spain bank recapitalization news. AAPL reversed early in the morning, INTC lost its 200 day moving average and IBM closed below key support at $187. Warnings from CMI and AMD also weighed on stocks. Many are looking at the high 132 area on the SPY and the mid 77 area on the IWM as support when the Europe bailout was announced. We closed right at the 50 day and it’s important that the bulls hold on as profit warnings pile up. As the world economy slows, buyers seem to be nervous about next week’s earnings.
