Here we go again with the Europe crap. The market did its typical Europe morning selling then buying after Europe closes. The early morning saw selling as SPY opened below short-term support of 131.23 eventually bouncing off 130.06 as the bulls successfully defended the 130.00 round number level. But the market was unable to get above resistance at 131.43 as the high of the day was 131.44.
Chart on SPY.
The selling pressure came from the finanical sector as the leaders like GS, C were down 2% and MS was down 1.94%. Pressure also came earlier in the day as the dollar was rallying only to be stopped at 79.50 and Friday's highs.
Overall the bounce the bulls managed from 130.00 and the breaking of resistance still shows strength in the market. But what we saw this morning once again means that the Europe situation will still rule the market.