This morning, the S&P 500 Index e-mini futures (ESU1) are trading higher by 3.50 points to 1310.25 per contract. Traders and investors have experienced a very weak market during this past trading week. Nearly every stock market rally has sold off into the end of the trading session, this is a weak sign for the markets. There is an old market adage that used to state, “it does not matter how stocks open, it matters how they close. Since the May 2011 stock market high, traders have not been willing to hold stocks over the weekend. We shall see if the major stock indexes experience another late day sell off before the weekend.
The European Union Banking Authority is going to announce the results of some European bank stress tests this afternoon. This announcement could also move the markets during the trading session. The expectations are that 10 -15 banks will fail the stress tests. In any case, the problems in the Euro-zone are not going away anytime soon. The European markets are trading flat this morning.