A technical rally ends; fundamentals apply renewed pressure.
Technically, the sour news corresponds with a corrective rally that may have hit resistance that won't again be tested for a while. While the S&P 500 (below) is certainly vulnerable, markets in Europe and Asia are especially vulnerable in the current environment - shorting (or buying put options) on select ETFs like FXI (iShares China), EWI (iShares Italy), or EEM (iShares Emerging Markets) may make sense now. Below is a chart of the S&P 500 we originally put together on June 7 to get an idea of how long risk appetite might drive markets higher; are we done?
Market Vitals | 21 June 2012
https://static.squarespace.com/static/530f66d6e4b05207a038945b/530f6854e4b0f37a89428bdf/530f6859e4b0f37a89429434/1340649814163/062112%20mv%20final.docx [http://r20.rs6.net/tn.jsp?e=001O1sE0LnqTUb0yx-eMG9Y3c843A_jZhTvAyj-sJhU3fGhOsfMxmeFYKbxjzM66j0OViHt7DBI2p8VheD8G3zkjkIAKGao37PK1AEgO_sX5TSuAg6O2z8qA3UDZetTrYe_qq4lIZe4NwdPFuWIUqYtZcV-7oLe2Fv1pj25FFev0sqd9_h2VTeBQyI8R7BOeIFzXRfF4nHXH8DoqvvKcJ2EFw==] ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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