Hello All,
Hurricane Irene wasn’t as bad as expected, but its effect on the NY area commute was evident with lighter than usual volume at the exchanges. We had news over the weekend of two Greek banks merging, which is a sign that something is actually being done to help alleviate European debt concerns. However, Trichet has acknowledged that growth could be weaker than expected across the euro zone, which would make the central bank more reluctant to raise interest rates. Fundamentals aside, relying on the charts the bears would need to step in immediately to keep any hope of a new low alive. The ES has technically completed an ABC correction, but the third leg could potentially extend to the 1240-1260 level and still keep the downtrend intact. Crude oil seems to be doing a triangle pattern that would suggest another higher low, and another lower high before she makes another break for $77. And it’s anyone’s guess what the Euro is up to as we will not attempt to get back in unless we’re below 1.43. We have Case Schiller, Consumer Confidence, and FOMC minutes being released tomorrow. Ahead of Labor Day weekend and our unemployment data on Friday, we may just chop our way to Obama’s speech next week.
I’m still in the bear camp, but I’m close to switching sides…lets see if the next few days cause major damage to the charts or confirm the aforementioned corrective patterns. We’ll keep an eye on the yellow metal to see if the gold bugs can re-inflate fear in the markets.
Similar Posts:
- Making sense of the day, but what to expect next…
- Can China save the day? or should I say month…
- Payroll Tax Holiday on the Way Out?
- Credit Card Companies Taking Massive Losses
- Weekly Roundup: Blog Picks 2/18/11
