Interesting FACT

The S&P is up a whopping 8% over the last 10 years.

!!!!!!!

What is the Surprise

Weak earnings from BAC and GS and the street it is acting like it is a surprise, REALLY!
Too optimistic folks are about the banks when they are stuck in a dirt for awhile. There is a reason why the banks are not lending money and it is not credit related it is because revenue streams are drying up. I believe we will go through another period of bank consolidation because they are just not solid enough to survive wall street expectation in this weaker economic climate.
GS expenses fell over 23% and they still missed revenue targets because trading revenues were down 50%. Cut in half why? it is harder to trade and they doing what they should DON'T trade in this type of market, I have been saying this for awhile on this blog.
Lets see if they can hold the 1300 level today. that is a Value area to look at.

Broken

So 1295.25 is broken, next level to watch is 1290.50. I am thinking that will hold or the 1288.50 but 1290.50 is a fib level.

Breadth is pretty nasty

Lows Cont'd

Broken- it is expected 1295.25 be tested today.

LOws

Overnight lows hit here- if we can't hold I am looking at 1295.25 as the next support which was last week overnight lows.

Before Open

Well the summer dulldrums are here!! Friday volume was so light it was impossible as a trader if you are to do anything. Well this morning Gold made it over $1600 obviously mainly due to the debt issues that are plaguing the US. We are going to open negative but we have been holding that 1300/1301 level pretty well but we will see what happens today.

Things to come

GOOG, Citicorp or JPM earnings could not save the market. Even with GOOG blowout the nasdaq is barely up. Not a real good sign, show sellers are outnumbering buyers