Portugal is Europe’s next big problem. According to the Globe and Mail:
Greece has been the debt crisis headline hog for months. This is unfair to Portugal, whose own financial nervous breakdown is getting uglier by the day, to the point that many economists and bond investors think a second bailout, a bond restructuring or outright exodus from the euro zone is inevitable. Most of Portugal’s key economic indicators are going in the wrong direction.
Things are not going well in Spain either. From the Globe and Mail:
Spain’s economy contracted by 0.3 per cent during the fourth quarter, according to official figures, edging the country closer to a new recession as it deals with huge levels of unemployment and painful austerity cuts. The economy is expected to slide further through March, placing Spain back in its second recession in less than three years.
As far as the U.S. markets go, not much has changed. We still have conditions in place for some type of reversal/top. An S&P 500 close below 1,314.65 would bolster the bearish case.
Potential areas of support to watch include 1,285, 1,275, 1,260, 1,213, and 1,192. A weak bounce between 1,298 and 1,303 would fit well into the reversal case (a move with weak RSI).