It’s a quiet Monday and everyone I speak to is waiting for Thursday’s summit in Europe. Lots of important folks are putting lots of weight on it so it could well be one of those toggles between the next rally or a good sell-off.
Today we are seeing follow-through selling from last Thursday’s reversal, which came right at the 61.8% Fibonacci retracement level. The S&P 500 is still holding above 1300 but anything below there is subject to the price target neat 1230 in the month of July.
In terms of equity sectors, energy is leading us lower today with Oil also down a good 1.,7%. The XLE is retesting the June lows. None of that is positive so unless we can reclaim about 1340 on the SPX I would definitely stay out of the long side of the June rally.