While comments out of Europe over the weekend point to signs of a more urgent push for a fiscal union the euro zone, that may be not enough for the market that just saw the Dow turn negative for the year and the S&P 500 dip below the critical 200-day moving average for the first time since December – a level that many technical analysts view as a harbinger of more selling.
In electronic trading on Sunday, S&P 500 futures fell 0.9 point, suggesting a slight dip at the open on Monday morning.
“The sentiment backdrop continues to grow more pessimistic and remains consistent with negativity seen at major bottoms during corrective pullbacks the last few years. Hedge funds are no longer showing interest in stocks,” said Todd Salamone, director of research for Schaeffer’s Investment Research in Cincinnati.
CONTINUED at Reuters.