Market Slips to Start the Week, Futures Lower

9:00am (EST)

The bulls were faced with headline risk over the weekend coming into Monday’s session but all the news seemed pretty good. Italy was able to approve key austerity measures over the weekend and announced European Commissioner Mario Monti would now run the show. Meanwhile, Prime Minister Lucas Papademos will lead Greece which faces a confidence vote later in the week. There were some rumblings concerning Spain but let’s not go there just yet.

The Dow fell 75 points, or 0.6%, to finish at 12,078. The blue-chips touched a low of 12,027 while the high was 12,170. We mentioned yesterday near-term support was at 12,000 while near-term resistance is at 12,200. As you can see from the chart below, the bears hold a slight edge in reaching their target first but the trend still favors the bulls. Notice the “bullish symmetrical triangle” (black lines) we have drawn. This chart shows you exactly why Dow 11,800 held last week, why it could get tested, and why the Dow is headed past 12,600…(to read more, click here)

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There has been a bevy of economic news before this morning’s opening bell and much of it has been so-so. We will cover the details in our afternoon update but futures are pointing towards another lower start.

Dow futures are lower by 60 points to 12,000. The S&P 500 futures are down 7 points to 1,245. The Nasdaq 100 futures are off by 10 points to 2,333. (Subscribers, please go to the Members Area this morning to see the charts)

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Market Slips to Start the Week, Futures Lower

CFTC Disclosure: