Everything’s riding on this week, says Raymond James strategist Jeff Saut:
The call for this week: This week should be “kiss and tell” with the equity markets in a position whereby they either gather themselves up and finally decisively break out above the 1340 level, or break below the SPX’s 50-DMA (@1325.35). This morning, however, it’s again European debt woes that are pressuring stocks to the downside leaving the S&P 500 pre-opening futures off some 13-points. If they open there, it would leave them slightly below that 50-DMA, indeed, kiss and tell time . . .
Already, we’ve broken well below that 1325 level.