Market Outlook 28th June - 2nd July

US:
US indices dropped last week after disappointing economic reports. The decline was broad based and led by drops in the Retailing (-5.58%), Auto (-5.7%) and Energy (-5.9%) sectors. From a technical point of view on the S&P 500: daily indicators are mixed. The index has failed to break above 1130 (50% retracement of the last down move). Therefore the market should enter a trading range phase between 1050 and 1130 in the days ahead until the 2Q earnings seasons kicks off on July 12 with Alcoa's results (after market).

- EUROPE:
European markets fell last week hurt by sharp declines in the Utilities (-4.26%), Construction & Materials (-5.59%) and Oil & Gas (-5.74%) sectors. On the STOXX 600, the upside potential has weakened last week but above 244 there is still a chance to see a retest of 260. Daily indicators are mixed. On the downside, a break of 244 would call for 240 & 235 initially.
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