By Steve Reitmeister,
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.
(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.