I believe in profits. This was a 'real' move down in equities and commodities---deflation. We are headed down that's for sure the question is how much can the open market activities avoid a meltdown. I think very well. They will asI said pick their support figures carefully and allow this latest asset bubble deflate.
Today will consolidate yesterday's 3% downward thrust and digest the overnight weakness in the futures maeket yielding a 1% range and closing at about 106 on the SPOOS. We have a range from 1051 to 1065. Next week we chop higher for another thrust down to 1000 in the near future. Deflation.
So far correct to the tick... Afternoon session may be interesting if low for day gets taken out by volume. I doubt it but buying is weak and yesterday non-existant.
....and see Opie that's how with just the flick of a switch an entire nation's fortunes were altered. Econ 101----Don't fight the PPTL bot.
Well it certainly looked like an orchestrated PPTL intervention. At key support afetr a nasty week with the ECB in crisis mode containg the southerb european sovereign debt debacle. We ended up with an interesting friday but the weekly and monthly charts still look sickly and that is in the context of an uber rally since March 09'. I doubt we rally in v-like fashion back to 1100 in the SPOOS bu ta right shoulder in a H & S formation looks plausible for March and then a charge for 900-950ish.