by John Galt
June 26, 2012 05:25 ET
Yesterday in my quick note on the markets I pointed out the key support level of 1296 on the S&P 500. That has not changed but if it does fail to hold in today’s trading AND the move below that mark on the close is with high volume, then the markets will likely capitulate in the weeks ahead. However, if it holds or breaks slightly below that mark on low volume, expect one more rally attempt up to the 1360 level, especially after the Obamacare decision is released on Thursday and with a holiday in the middle of next week allowing for exaggerated moves on little if any trading volume.
In other words, the markets will not be dull by any stretch of the imagination. Stay tuned as it gets crazier in Europe causing more distortions in our own economy and stock markets in the weeks and months ahead.