Terrible traffic today so I am home late.
Resolution is at Hand
Last night I discussed the possibility that a slew of flammable components could get the markets running higher if there was some kind of spark to ignite them. Today there were two:
-Huge reversal in financial shares to the upside
-A probable Euro Zone debt package sized around 2 trillion Euro (WOW!)
The Euro debt agreement is in flux it seems with some denial coming out, but it's too late. Why? They have seen the numbers the market wants and will have to roll around to making it happen. Market expectations are a bitch.
Putting it all together the stage is set for some Panic De-Selling. Apple missed their earnings by a bit, so the Nasdaq is pressured right now in the futures. If that fails to stop a run higher tomorrow it will be telling.
I am not long term bullish here, nothing is getting solved really. As James Bianco stated, the common fundamental now is trillion dollar money bombs. If it falls, the correlated market will run. News won't matter, save a bona fide slowdown in China and how would we know that anyway.
Now this is not a done deal. An S&P close that sticks over 1230 is a must have here, and soon. You can see how annoying things have been trend wise in this chart of SPY:
A run to about 1280 could happen and that meets the 200 MDA. Looking out at just about 2 months left in year and being down for the year what might market players think about doing then?
In any case, I think resolution is close at hand. Maybe this week will give the answers needed to get more actively involved with the market.
Have a good night.