market folly

Market strategist's Jeff Saut latest commentary continues to focus on key support/resistance levels in the S&P 500. Last week he was concerned about market action. As the markets gyrate back and forth (essentially trading sideways), he waits for a resolution. This week, he can't help but be slightly optimistic, writing:

"Nevertheless, earnings continue to be the driver of the stock market's buoyancy and earnings remain robust as 73% of the 345 U.S. companies that have reported 2Q11 earnings have beaten estimates."

However, he also points out the obvious that if the debt ceiling is not raised, we'll see another downside hit. Saut's support levels for the S&P 500? 1316-1320 and the second is 1292-1296.

Lastly, it must be highlighted that Saut quoted lesser known rapper Tech N9ne in his missive, in what has to be an industry first.

Embedded below is Jeff Saut's latest market commentary:



You can download a .pdf copy here.

For more from Saut, head to his piece on the biggest worries of 15 European portfolio managers.