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Markets Slam Into Master Level, Short Term Bounce Possible As These Plays Look Promising

|Includes: CSUN, SPY, Suntech Power Holdings Co., Ltd. (STP)

The markets sold sharply in morning trading on the back of a continued sell off in the Euro and pop in the Dollar.  The reasons continue to be Greece and Europe.  Fears of the Greek contagion spreading continue to be at the forefront of the global fears. While this caused the market to sell sharply, a major level of $115.00 - $115.50 was tagged on the daily chart of the SPDR S&P 500 ETF (NYSE:SPY). The SPY low of the day was right in the middle at $115.22.

As soon as this hit, I started to get short term bullish.  Note, this is very short term. This level should work as a solid support level in the next few days.  I put out an alert on the Hot Charts & Alerts which is part of the Research Center to my subscribers.  There are many stocks that can be played at these levels. BlackRock, Inc. (NYSE:BLK) looks extremely attractive at the $173.75 level.  It is into daily support as well as major moving average support on the weekly and monthly charts.

Other stocks that seem like they are due for a bounce are Chinese stocks. While the measures China is taking to slow their economy has pounded Chinese stocks, certain solar stocks have dropped sharply and may be ready for a short term bounce, especially if the dollar gets a pull back.  China Sunergy Co., Ltd. (NASDAQ:CSUN) is catching my eye as it reported great earnings just a week ago.  The stock spiked higher on those earnings and is now trading well below those levels near solid support.  It is trading at $3.97 down 6% on the day.  In addition, Suntech Power Holdings Co., Ltd. (NYSE:STP) just hit a major double bottom level on the daily chart and seems like it could bounce.  It is currently trading down at $11.31 on the day.  These plays are risky because the stocks have fallen sharply, however, good support should give a possible bounce.

Keep an eye on China ADR's as they have been pounded excessively.  Let's keep us in mind, China is trying to slow their economy from growing at inane levels near 10%.  Even growing at 5%, they are far ahead of the rest of the world.  Chinese plays at 52 week lows could be very interesting at these levels.

Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com