The EU is sliding, Greece is breaking plates and banks, and who’s left to flex the leadership muscles — none other than the United States of America.
Since the EU took a page out of the U.S. playbook recently and China is waving red flags, the U.S. financial markets could be the leader out of this near-term correction. Could the patriotic rebound come following Memorial Day (May 31)?
From a technical perspective, the U.S. financial markets are broken. Once the 200-day moving price averages were penetrated and not recovered, the markets struck another lightning bolt of fear to a slowing jobless recovery. Wall Street stock prices are finally correcting to the real story on Main Street.
Important line of support: S&P 1070. If support is proven over a few trading days, the S&P could see a bounce back to 1125 in the near-term. Along with the potential of 5% upside on the S&P, Gold Prices are catching wind to the upside (GLD was up $1 Monday morning).
All eyes from around the globe are lost in this choppy trading environment, however leadership indicators will arise and direction will follow suit soon.