The S&P 500 is coming off its longest losing streak since last November at 5 days. The market is bouncing in early trading, with the SPX trying to regain its now overhead 50-day average.
Overnight trading was weak in Asia following weak action in US markets and lingering concerns about sovereign European debt. But the action in Europe took a decidedly positive tone this morning after a successful auction of short-term bills in Italy. This helped drive yields lower across the periphery of Europe.
In corporate news, Alcoa kicked off earnings season last night with a strong report. AA topped consensus estimates handily and also raised its growth forecast for the global aerospace market.
On the flipside, Nokia lowered Q1 guidance and its stock is getting hit.
The euro is higher this morning, but commodities are mixed. Oil prices are higher near $101.70 while gold prices are slightly weaker at $1660. Copper and silver are also mixed.
The 10-year yield is seeing a little bounce to 2.03%. And the VIX is falling -7.5% this morning below the 19 level as some of yesterday's fear comes out of the market.Trading comment
: A couple of different pictures for the SPX and Nasdaq in terms of their 50-day averages. The SPX broke through its 50-day support yesterday and today is trying to recapture that key support level (watch 1373). As for the COMP, it closed right at its 50-day support yesterday and today is bouncing higher from those levels (watch 2992). Looking at many of the other growth stocks that have been leading the market, most of them are still holding up. A handful have broken below their recent uptrend lines but are still trading above their 50-day averages. That said, yesterday was another distribution day (read: high volume selloff) in the market and adds to the number of distribution days we have seen in recent weeks. As such, traders should be in defensive mode and looking to protect profits and raise cash.