What you need to know for Monday the 7th

Earlier in the day we wrote about kicking the can down the road and pushing off a complete write down of sovereign debt in the EURO ZONE.  The market understands this risk (we can only hope) and ultimately a real solution will need to be addressed.  So what does the individual investor do in the mean while?  More than ever, the markets are running on emotions, which ultimately is coupled with technical levels.  The S&P at this juncture is discounting a lot of risk to global growth.  Know investment strategy is perfect and we missed a lot of opportunity over the years.  However, we did call the buy of the S&P 500 on Oct 3rd at 1090.  Since the run we have repetitively said, nothing has changed.  We advised readers to reduce risk at 1275 last week.  The market is building support in this region. I think investors will have the opportunity for another push into 1305, which again take some off the table at this level.  Lastly, if the markets rally to the upper region of 1350 for a year end rally, this should be sold.
Below are technicals for the S&P 500.  CMG, PCLN, AMZN & MA are names that we are looking to enter at a lower level on the S&P.  If the S&P 500 were to test it’s 50 Day Moving Average we would look to step in and buy these names.  For our FREE S&P 500 News letter visit www.thechartlab.com

http://www.forbes.com/sites/thechartlab/2011/11/04/what-you-need-to-know-for-monday-the-7th/