Lack of clarity & belief in European Debt progress, a dour Fed outlook and more negative economic reports pulled the rug out from under the market’s nascent recovery last week, leaving the S&P 500 (SPY) lower by -6.6%.
While select sectors, such as Materials (XLB) and Energy (XLE) are well oversold, the majors are only in the early stages of that condition, and with prices at the bottom of the month-long horizontal range, U.S. markets are clearly at an important inflection point with next technical support significantly lower.
Source: Mrkt_Commentary subscription service; prior weekly posts.
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