Reason or Excuse?
The Market:
Depending on your bias you likely either believe the events transpiring with Russia “scared” the market causing it to drop today or you believe the drop was already in the cards based on the technicals and the Russian incident just gives the news something concrete to point to as the cause. While we tend to be much more in the latter than former camp, we also subscribe to the believe it doesn’t really matter as in either case we are left with what happened and the decision what to do now.
The S&P 500 made the majority of its move in the gap down Sunday evening in the futures and the remainder of the day essentially played “Pivot Pinball” bouncing between support and resistance. We now have key levels of reference in the e-mini, namely 1850 on the upside and 1832 on the down.
Reporting EPS Tomorrow Pre-Market: