Thursday, April 08, 2010

Morning Briefing for April 8th: Risk Aversion

Continued concerns over Greece have renewed pressure on the euro, and we can see that stocks have moved back into the top of a multiday trading range after the upside breakout on 4/2. We're also seeing a pullback in oil; gold, however, is stronger. Risk-aversion seems to be the theme of the moment. I am watching closely to see if we can stay below the 1176/1177 area that had represented resistance in the prior trading range. Accepting value into that range would signal the likely start of a consolidation period following the market's strong upside run.