U.S. equities started off positive this morning and the bulls were sure new highs would be made. The history books had other plans as the bears battled all day long finally taking control. The worrisome part was that the volume was strong. Much stronger than any rally put in in the last few months.
Investors beware that distribution may have begun.
Essentially, the markets were ruled by Italian elections. Every time exit polls showed a potential lead for Berlesconi the European markets and U.S. markets got worse. After Europe closed worries turned to tomorrow’s testimony by Ben Bernanke.
Stay tuned as trading will get very interesting over the next few days. Essentially your looking for the S&P to hold 1450-1455 or to break out above 1525.
DOW off 216
NASDAQ off 45
S&P off 27
WTI off $0.93
Gold up $21
