Wednesday, June 30, 2010
S&P 500 Breaks Support Level
In the last hour of the trading day, the S&P 500 broke through the 1040 level. The market has bounced off this level repeatedly over the past month, selling off sharply after the market failed to bounce off. This is a very bearish sign for the market, and the market will more than likely continue to sell off as the technicians will definitely bid this market lower. Another bearish sign is the 10 year treasury, now yielding just 2.94%. To me, the 10 year is a key indicator of where the market is going. If the 10 year continues to fall, so will the market. Investors are worried about the world economies; this is why they are flocking to treasuries. This trend will continue until a)European financial markets are fixed and b)US housing and employment numbers begin to rise.