The recent bounce in the stock market remains unconvincing. The SPX has been unable to take out even minor resistance at 1325 and then again at 1332 and has failed at the 25 day m/a. On balance, a
downtrend remains in place -- lower highs and lower lows as well as a receding 25 day m/a. $SPX
The psyschology of trade is difficult here, too. Numerous reports in the financial media suggest
further monetary accomodation and stimulus in key quarters to complement the recent easing action
in China, but nothing concrete has yet been forthcoming. Moreover, with a big EU summit slated
for late June and with Italy's reform programs hitting snags in Its legislature, the bond guys have
put Italy's gov. bond into play, perhaps as a way of forcing the EU's hand. In this kind of
evironment the risk on trade can be very tricky business in the absence of solid news that
players can jump on with gusto.
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