IIFT Daily Note with Peter Brown

Have we started a down trend?

Posted by:  |  Time: 7:37 am  |  Topic:
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The markets sold off seriously yesterday. Is this the start of a down trend? Well key levels were broken on the stock market 1417 on the S&P. A combination of poor blue chip results and renewed worries over Spain have turned this market around. We were at 1459 last Thursday. Geece is also back in the limelight, they will need another deal.

All in all we may have entered a bear market. Realisation that growth is falling despite QE in the US and that Spain will not trigger the ESM has changed the outlook dramatically. We are now looking to sell on rallies.

S&P resistance should be at 1417/20  Euro at 1.3000

Downside targets are at 1400  and 1.2835

I favour a slight bounce first and than continued selling.

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