The US stock market has been stuck in a sideways trading pattern for the past few trading sessions. Market watchers are worried about a potential collapse in the Euro, while others are hoping that all this bad news will force the Fed to start another stimulus package.
The S&P 500 will mostly likely trade at the current levels down to its 200 day moving average while investors wait for the outcome. In fact, volume has been low the last few days and investors seem to be evenly split on which way the market will go from here:
For now, keep an eye on the 200 day moving average. A break below it, will indicate that the majority of investors are concerned about Europe’s outcome and don’t believe the Fed will/can come to our rescue.