3 Strong Reports and Still Down Again

By Steve Reitmeister,
Executive VP,
Zacks Investment Research

Retail Sales, Empire State and Housing Market Index all told a tale Tuesday of economic growth in the US. And for a while that had stocks in the green. Yet as we came into the closing bell those green arrows turned red once again.

Why?Europe

(as if you didn’t already know). Everything turned sour when it became evident that the Greek government could not cobble together a coalition. This means a new round of elections in June and pushes out the uncertainty in the region even further.

With that, bond rates in Spain and Italy soared to unhealthy levels. Now their 10 year notes are at 6.35% and 5.86% respectively.

We are within striking distance of 1300 at which point there may be a little bounce. Maybe even a tradable bounce. From there I still expect us to find our way back to the 200 day moving average at 1277.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s