Option Investor
Market Updates

Lower Open

HAVING TROUBLE PRINTING?
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The markets look to be in for a lower open this morning, with Dow futures down 38, and Nasdaq futures down 10. Yesterday's warnings after the bell are having their impact.

Bond yields are also lower across the board, with the five-year note down the most, 1.20%.

Overseas markets are fractionally lower, with the French CAC 40 down the most at 1.14%.

The Dow could be in for extra trouble after Phillip Morris lost a lawsuit, and J.P. Morgan and Wells Fargo announced that their venture capital units would lose more than expected.

S&P Banks Index Daily Chart

It's too bad really, because banks had just broken out of the channel then were trading in, and were looking like they wanted to test the January high of 684.74. Now we have to figure out where they could pull back. 653 looks like today's target, with the top of the channel and 61.8% retracement at 641 being more solid support. The 50-dma should also be moving up to support prices also.

Jeff Canavan
Assistant Analyst
www.premiermarkets.com

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