• So far another day of lower prices taking everything with it, except the utilities…so a normal risk off day so far.
  • Over in Europe however note that the financials had a good day (which may well be a one day event but still) and bonds too traded higher in price.
  • While the economic calender this weak is not as busy as last week we do have potential for an orchestrated move by global central banks, including a Bernanke testimony on Thursday.
  • At this stage I would like to again point out that the S&P 500 at one point this  year was up around 13%..it is now up 1% as of this writing.  If you are getting bearish now you are not playing the high probability game.
  • Let us leave the ‘buy high, sell low’ game up to others.
  • A quick look at the simple Bollinger bands chart of the S&P 500 shows that we broke below the lower band.  While that is not a buy signal in and of itself it is one warning signal for the bears to maybe lighten up on their shorts.

 

 

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