The Three-Headed Monster Can Be a Powerful Force

Despite an early dip-buying attempt off the open, stocks are back down to around the morning lows as I write this. 

On the SPY, ETF for the S&P 500 Index, the $208 level figured to be quite the battleground, serving as initial resistance into the opening bounce attempt after previously acting as support. 

But, beyond that, the persistent weakness in The Big Three banks out of Europe: BCS CS DB, is acting as an overhand of sorts to the market. Note DB, below on the daily chart, for example, pushing to new lows this morning, as BCS and CS sell-off as well. 

At some point, if The Big Three keep sinking I suspect some panic will set in as market players realize these three have given up all or most of their post-Brexit gains. 

Interestingly, a leader like AMZN in the U.S. remains unperturbed by all of this, which shows the usual underlying resilience we have come to expect from the market in recent years. 

Thus, a continued tactical and defense approach to trading makes sense, particularly as long as the major averages remain rangebound.