Can S&P Reclaim 200-day Moving Average?

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Morning Call video with Pete Renzulli:

S&P futures are off about six handles this morning as the post-election selling continues. With a down open this morning, the S&P will be opening below its 200-day moving average, and it will be important to see whether it accelerates below or reclaims the MA in the next few sessions. Newly re-elected President Obama will be speaking today on the fiscal cliff and the economy, and investors will be watching to see whether his words have a calming effect on the market.

The European debt crisis is also back in the headlines after being overshadowed for the past few weeks by the US Presidential election. Concerns linger about Greece despite the fact that its parliament approved the latest round of austerity cuts yesterday that pave the way for another tranche of aid. However, Greek parliament still has to vote Sunday to approve the government's 2013 budget proposal, and then Euro finance ministers will meet Monday to decide whether it will allow the next round of aid to be released.

Groupon (GRPN) shares will be in focus this morning as the stock is set to open 20% lower following another weak earnings report. Yesterday the stock surged more than 4% into the close ahead of its report, but once again failed to meet expectations. It's been a precipitous fall for the stock since its IPO, and it now has a market cap of around $2 billion after rejecting Google's (GOOG) takeover bid of $6 billion several years ago.

Shares of 2012 IPO Kayak (KYAK) are up 25% this morning after Priceline (PCLN) agreed to buy the company for $40 per share. The $1.8 billion dollar deal is a major shake-up for the booming travel deal industry.

Apple (NASDAQ) appears set to open flat this morning as it looks to bounce back from extremely heavy selling the last two days. The stock broke its 200-day MA Friday, and paused early this week before cascading lower. The line in the sand is around $522, an area traders will be watching very closely for a possible bounce. If AAPL doesn't hold that level, the next support level isn't until around $420.

Continue to follow us on the Virtual Trading Floor(R) as we navigate this sell-off and try to identify the best dip buying opportunities. If you want to learn how to use technical analysis to manage your risk and identify trade ideas, make sure to sign up for our Free Online Home Study Course.

*DISCLOSURES: Pete Renzulli has no positions

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