A
n overbought market met some negative news flow with a ugly Philly Fed number, Spanish Bank troubles and Moody’s downgrade of world banks. There are just too many negatives for operation twist to support the market without another round of QE. With the Supreme Court decision on health care pushed to next week, profit taking kicked in. There are a few very short term indicators that were stretched after today’s sell off and are supportive of a rally. However, beyond a day, the short term trend had shifted down and possible support range from 131-130 SPY.
