Markets around the world are down to start the week on news Greece is requesting further aid to deal with debt woes as the EU seeks more austerity for potential assistance. The Greek ASE Index sank to 13-year lows on the news and the CurrencyShares Euro Trust ETF (FXE) is down as well. Complicating the issue is the arrest of the IMF's Chief, Strauss-Kahn, held in NYC and accused of sexual assault.
Investors concerned with European debt woes and the loss of economic momentum, continue to take risk off the table starting with crude, silver futures, down nearly 2% in early trading. The iShares Silver Trust ETF (SLV) is down nearly 3% adding pressure to commodity-related stocks, also down pre-market trading.
Financial stocks continue to lead downwards with Citigroup (C) down nearly 1%, pushing U.S. futures lower. Goldman Sachs (GS) is also negative in pre-market trading after breaking major support last week below $150 and leading the Financial Select Sector SPDR ETF (XLF) to lower prices.
Weakness in key indices like the iShares Down Jones Transport ETF (IYT) and the Oil Service HOLDRs ETF (OIH) underscore the technical damage done to the markets over the last few weeks. Transport stocks like CSX (CSX) and Norfolk Southern (NSC) are breaking down through important levels, as refiners Schlumberger Limited (SLB) and Halliburton (HAL) approach significant support levels after weeks of selling.Relative strength continues in the semiconductor industry led by Intel (INTC) and Nvidia (NVDA) -- retail is led by Polo Ralph Lauren (RL), Abercrombie & Fitch (ANF), Lululemon Athletica (LULU) and the health care sector is led by WellPoint (WLP), Amgen (AMGN) and Biogen (BIIB). Investors continue to hide in these stocks and sectors, while they take risk off. Traders will look to the 1330 level in the S&P or 133-133.20 in the SPDR S&P 500 (SPY) to provide support for buyers. Disclosure: Scott Redler has no positions.
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