Will we Finally Print 2100 this Week?

posted Jan 26, 2015, 10:08 AM by Katie Shook

Answer:  probably.

The topic of the week is likely to be Greece.  The election results are in and the anti-austerity party won the day.  So we get to try 2011 all over again — only this time we’ll add a splash of QE to make it interesting.

This should continue to keep the US looking attractive for the time being.  Sooner or later the dollar will be too strong.  In the short-term though, the most attractive ‘scenario’ is domestic.  Scenario is the operative term here, since there are still a bunch of issues we’re sorting out in our economy — be they political or economic — the long-term middle class squeeze is a bad thing.  But in the short term, the rest of the world looks even yuckier.

Futures dropped suddenly across the pond on Sunday.  They've since stabilized and erased most of the negative.  I’d look for the markets to temporarily drop as trader test various support and resistance levels today.  Look for a bias to the positive this week, with 2005 being the big support area, and 2100 being the big resistance area.  We are likely to continue in this range through the week.

ScreenHunter_06 Jan. 26 06.18

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