Analysis:
Yesterday's Analysis predicted that "the Initial Jobless Claims will stay above 450,000," and they came in as 465,000. The market opened lowered and bounced off the Leading Economic Index and Existing Home Sales. The former is an abstract number that is intangible, while the latter are the second lowest in history and look better only because the previous sales were the lowest in history. The market could not stay above 1,131 and fell within the trading range since mid-May. Unless the market can immediately reverse itself tomorrow to close above 1,131, the Bears will be enboldened and become very aggressive in attempts to push the market below 1,088 (hopefully not tomorrow). Looking ahead to tomorrow, AMD's lowering its corporate guidance may herald another round of disappointing corporate guidance before the earnings season, and a Durable Goods Order in line with consensus would only confirm the false breakout of the market early this week.
Strategy:
Hold short at 1,122
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