We posted last week that the S&P500 could go to 1340 and then we’d reconsider our market view. Interestingly, today’s low on the cash S&P500 was 1340.03.
We also had doubts there were enough sellers to take equities down. It looks like the profit taking in Apple, which hurt us, prior to tomorrow’s announcement and worries over closing the Greek bond swap were enough to spank equities, however. Not to mention worries over Chinese growth.
We now think 1320, which coincides with the trend line in the move since October and the 50-day moving average is THE entry point and THE line in the sand. This is a healthy pullback unless Europe starts to unravel again.