SLOW DAY... THAT EVEN MEANS TROUBLE

Finally the big bounce hasn’t occurred yesterday after the huge sell of last two weeks. The cat was still dead yesterday. The US stocks started the trading firmly in red:

• S&P 500 -0.4%
• Dow -0.3%
• Nasdaq -0.6%

During the session all major indexes all bounced off their intraday highs and finally they consolidated around breakeven:

• S&P 500 — +0.03points
• DJIA — +0.1%
• Nasdaq Composite — +0.1%

This consolidation and pretty boring trading session might mean good sign for today some breakout. After 8 days losing out of 10, the DJIA consolidated for the second day, so maybe the prices are getting to be good bargain for traders. Let’s see today the market’s reaction. The investors generally are still concerned about geopolitical risks and fear of European economy’s weakness, just think about the yesterday disappointing Italian’s GDP report.

Technically still valid the breakout level on Nasdaq the 3,900, this key resistance level needs to be taken to see some significant gain on the long side.

The BFM Assets Team.