Markets closed on their highs yesterday and we are seeing some weakness in our futures this morning. Europe turned red on a weak Italian auction and there is also some concern on the chaos that can be caused when Cyprus opens its banks either today or tomorrow (I’m sure there will be plenty of coverage).
Markets have done a pretty good job “holding higher” during this recent bout of volatility as 1538-1545 has been key support. During the past six sessions though, it’s been one day up, one day down, and it’s been a bit hard to find follow through.
I’ve been trying to stay involved and it hasn’t been the “easiest environment” to find good ideas. As the markets were making new highs yesterday the banks were still in retracement mode, and I didn’t see many groups that “traders” gravitate towards breaking out. To me, the “heartbeat” of this move isn’t beating strong.
Support stands at 1555ish, then 1551 below this, and the new high talk will slow down and would frustrate some traders. The key support level would then be 1538-1545. Resistance stands at 1563-1565.
There will be no updates from me today and I’m out tomorrow, heading out to the West Coast for a special interview (a bit out of the box) that will be aired in next week’s Morning Call.
Disclosure: Scott Redler is long MA, NFLX, SPY, MGM, S, BAC, F, DDD call spread.