Market @ crossroad......

Market has been dealing with too many negatives for many months.

- First major negative has been slowing world economy.

- Second was ongoing European debt mess.

On the first account, there IS consensus now, that indeed China, Europe, US, India & Brazil has shown pronounced weakness in their economy. Most economists were expecting gradual slowdown, but reality has been fast & steep downtrend all over.

On European debt issue, there is consensus developing, that Greece needs to be given "reasonable amount of years" to bring austerity into play. This will ensure some growth while austerity takes hold.

EU, ECB, IMF all are in-tune with "more to be done" to stabilize Greece & Spain......the pace of resolution / bailout will pick up as we go forward.

In a way we are @ crossroad....

Economic statistics will continue to be downbeat until Fall......

Market IS trying to digest all of the above, but its NOT an easy task.....

Market will swing between HOPE & DISAPPOINTMENT on a weekly basis.

Currently market is leaning towards HOPE, which is why we have NOT made any recent lows.

Based on this HOPE factor, we may see gradual move to 1363.46 first & then IF we get some resolution in EU to 1392.76 area in S&P 500.....

One must NOT get carried away with any hopeful sign in EU.

Worldwide economy IS the-deciding factor in establishing any trading range......based on what the market is telling us, the range seems to be in 1266 to 1392 area +- 30.......

Strongly suggest, aggressive buying around 1290 area & booking profit around 1390 area......which MAY keep repeating until Q4........

BLOG does NOT give buy or sell.

Saleem