Analysis:
Yesterday's Analysis predicted that "the Consumer Sentiment will be lower than the consensus," and today it came in much lower than the consensus. The market sold off on the news until it hit the support at 1,131 and then bounced to resistance at 1,150 before closing higher in a day largely dominated by technical trading. Looking ahead to tomorrow, it is doubtful that the PMI out of China will give the market a direction, so it will be a day of consolidation in the 1,131-1,150 range as the Bulls and the Bears take their respective positions for more economic news later this week, the Bulls betting on more corporate mergers while the Bears betting on uninspiring economic statistics.
Strategy:
Hold short at 1,122
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