Euro Zone Trigger…….with update
As we have said before despite everything you hear on CNBC, the Euro Zone problem has been the trigger, rather than the whole reason for the recent sell-off in commodity and stock prices. Markets have been over-priced relative to the overall debt situation of the world entities.
As this adjustment unfolds one can look at minor and major support levels that should play a part in the completion of this summer’s action. The S&P 500 has minor support at 1005 and major support at 928. Gold has minor support at 1027 and and major support at 962.
Goldman Sachs remains an indicator of the regulatory cleanup process and we still see a support level at 117 as outlined on April 20th.
The Oil market may start to firm here as it is nearing support levels, many other markets have much more downside at this point.
Update at 8:57 AM CDT….the stock market seems to have found a little short-term support at 1053 on the S&P, this could set up a little volatility range between 1053 and 1103 for the moment.