2330 is key inflection point.
- Above it implies a re-test of Monday's high. A sustained break above implies short-covering rally targeting 2360-2370 resistance, but a false break above Monday's high implies fast reversal down.
- Below 2330 implies a re-test of 2300 support. A sustained break below implies a fast liquidation decline down to 2370 support. A falsebreak below 2300 implies a fast reversal back up.
With the Euro-zone on credit watch for future downgrade, the stage is set for a continual acceleration of a credit contraction, which would be bearish for stocks, unless of course central bankers are willing to print more and more money to support the market.
