China markets screwing with the system, the euro finally under 130 and a big data morning with Case-Shiller at 9:00, Chicago PMI at 9:45 and Consumer confidence at 10:00. Auto sales tomorrow with APD, ISM, construction and petrol. Things are not good across the pond. We've all known that the fiat/fractal induced bubble economies would eventually falter. One can only play extend and pretend for so long before the pretend part comes home and delivers the facial. That will be sooner than later. At this point they are doing all they can to hold on thru Xmas. As discussed things are spiraling out of control faster and faster as we enter the Event Horizon of the great financial/economic fiat black hole.
Economic Calendar - Pretty busy week after today. Please ALWAYS check the calendar.
POMO Schedule - $39B in POMO this week. (We'll most likely have POMO from now to infinity or till the systemic failure that is destined to come.)
Shanky's Dark Side - Where I call all the intraday action and throw out tons of charts.
Pivot Points - For what they are worth in this busted market.
EUR/USD getting hammered and thru support. We have been looking at this turn for some time and it finally appears the markets are going to react to the contagion. Next stop 26.
AUD/JPY correlation has lost some of it's magic, but it may kick back in here as this pair has met resistance as well.
SPX daily - 50dma at 77 and the lower BB at 70 are key support levels here.
Index comparison - I don't expect the financials to play catch up this time as a larger LT RS of a HnS may finally be in play. On shorter time frames the indexes while correlated in movements are very dispersed which is somewhat unusual.
Minis were as high as 1188 last night and as low as 73 this morning. That is another big drop just like yesterday. Plenty of POMO to go around and the power of POMO was seen to be alive and well yesterday. Key SPX level is 73.Looking for the C leg of 4 down to begin. Targets under 73 are 55, 44 and 30. The HnS everyone is looking at is near 27.
GL!
