Dartline™ First Look – morning directional planner

… Change near term resistance to 1095.40, while near term S&P 500 tests of 200 ema at 1046.20 will determine direction. A close above 1046.20 is critical to insure upside bias. However, a breakdown would indicate downward move to 991.50. The stock market lost 0.7% last week in volatile trade with selling driven by fears regarding the fiscal situation of several European countries, China tightening its monetary policy and the U.S. employment situation. A large number of companies reported mostly better-than-expected earnings, though their results had a relatively muted impact on trade as investors focused on macro issues. In the end, eight of the 10 sectors fell, though overall losses were contained thanks to some solid gains early in the week and a rebound in late trade on Friday.