Brief post this morning as I have some end of school year duties to attend today.
There is really not much to say as the markets hang in limbo surrounded by bad news already having fallen just shy of 10% to the 38% retracement of the climb off the 1100 close in October. Twist is still on and ends next month. The FB IPO is done. Everyone appears to be waiting on the Fed and ECB to make a move or signal there is more easing to come. Why else would the markets have rallied the past few days?
Markets are in a kind of gray area not sure where to go right now. The monthly and weekly charts say the top is set and there should be severe weakness still to come after the dailys reset and this corrective works its wonders. The problem is the Fed controls price. They know the proverbial shit is finally hitting the fan. They can't not act though, printing is not, has not and will not solve anything other than making a already awful problem worse and is destroying everything essential to the future success of their system. Still the markets driven by greed could care less. Like the meth addict that could cares nothing about the end result, they just want their fix now and expect it with the regularity it has been delivered in the past.
SPX Daily - Either the already oversold daily chart that is trying to reverse is going to embed or the bulls will somehow work off this condition setting up what I think will be even more weakness to come (barring the Fed's actions of course). A catalyst can occur at any moment. JPM losses, downgrades you name it this catalyst will have to be large to get this markets attention off the expected easing to come.
I'll be around sometime before lunch. Hold the fort down.
GL and GB!