I still want to see a “Panic” day of the stock market down 2% in a day and flush out some weak bullish hands. The key levels to the downside is 1274, which is the unchanged on the year and if we take that level out then it could get real ugly. The news out of JPM and Europe does not look as it is improving and with Facebook now under the $38 IPO price, I think we continue lower. I do think that the stock market is oversold, but have yet to see a rally day in May when the stock market closes on the highs of the day. This week might be a slow one with little economic data, with Home Sales tomorrow, Durable Goods and Jobless Claims Thursday, and Consumer Sentiment on Friday.
