Markets Headlines/Desk Color
· PT desk color - 1.06 to 1 better to buy - Strong Flow; Large Cap 77% and Mid Cap 20% of total Market Cap; Energy and Consumer Discretionary better to sell; Consumer Staples, Financials, Health Care, and Industrials better to buy
· SP500 technical update – from JPMorgan’s M Krauss - Tues closes below 1097, and completes our feared, overbought “bearish reversal” from Fri’s 1112.42 high, which has rejected interim targets at the 1110 Jan 19 61.8% retrace and 1115 Dec range break. With 1097/1100 now acting as resistance, SPX next supports at 1085, and risks the 1076.75-1079.13 Feb 17 hourly gap. Upside reversal month in Feb above 1074. The 1044.50 Feb 5 low held the 1043 July 38% retrace/4th-wave obj, and created daily momentum bullish divergences, amid pessimistic sentiment. Secondary support at 1035 10% drop, 1029 Nov low, 1026 Jan-Feb c=a, 1026 200 day MA, and 1019 Oct trough. Closes above 1116 reseek the 1130 Jan range break. The 1150.45 Jan 19 peak neared four targets at 1145-1159. Our 2010 Outlook suggests a range view between 950-1000 and 1150-1200, with a best case to 1229/1240.
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