Shore Capital Management LLC

Since the beginning of May the equity markets have been caught in a trading range. And since May, many have called for a consolidation of the equity market as the market quickly became overbought. There has been a debate whether the consolidation would be a consolidation of pricing or would it be a trading range, thus creating a temporal consolidation until the economy catches up with the market. Up to this point the consolidation has been temporal as the market has moved sideways.

Basis the September S&P futures contract, the market peaked on June 11th. Currently the market is testing the lows of May. We had an initial target of 878 and the market is near it.

If the market continues to sell off , the next support level is 868 to 859. If that breaks we could see the Sept contract in the 844 to 828.

If the market should start to rally, we see initial resistance around 890 to 905.