European markets lower this morning as sellers have maintained control throughout the session. Weakness could be in response to rising yields on Spanish and Italian Debt.
US Futures trading slightly lower ahead of the open but the market overall remains bullish as we continue to see higher lows and higher highs. One scenario I am watching for today is to see initial weakness that could bring the ES down to 1402-1403 in the early going. From there I would anticipate buying that could lead us back up to the mid 1410s and possibly beyond followed by new highs tomorrow. In any case, I continue to like buying the dips and will consider entering long positions at support levels.
FOMC Minutes this afternoon at 2:00pm EST
Levels to watch today on the ES:
Resistance above at: 1414-1415, 1417-1418, 1420-1421
Support below at: 1406-1407, 1402-1403.50, 1396-1397
Following a record first quarter in 2012, I thought I'd finish this post with a quote from David Rosenberg's first quarter recap:
"The S&P 500 surged 12% (and 3.1% for March; 28% from the October 2011 lows), which was the best performance since 1998. It seems so strange to draw comparisons to 1998, which was the infancy of the Internet revolution; a period of fiscal stability, 5% risk-free rates, sustained 4% real growth in the economy, strong housing markets, political stability, sub-5% unemployment, a stable and predictable central bank."
It is amazing to think about the recent gains given the state of the global economy. Easy monetary policy sure does make up for lack of jobs, slow growth and a terrible housing market, at least in terms of the stock market...
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