Yesterday’s rally to 1092 lasted until 130PM EST. Today’s rally to 1084 (another lower-high) has made it to 1230PM EST.
Volume is very light. Volatility has corrected by -10% on the VIX, but remains considerably above our TRADE, TREND, and TAIL lines of support (with the most immediate term TRADE line of support = 29.12).
Warren Buffett is defending the ratings agencies, joining the ranks of the “no one saw this coming” crowd …
Accountability and leadership in this country remain fleeting at a time that we need it most …
Willfully blind expectations that US deficit and balance sheet problems won’t become those of Europe continue to hang in the balance…
We aren’t going to solve the America’s problems today, but we will remain short this market in the face of the Perceived Wisdoms of those who are telling you they know exactly what is going on. All we know is where the lines in the sand are in our risk management process.
1. TREND line resistance = 1144
2. TRADE line resistance = 1101
3. TAIL line support = 1077
What matters most in our macro model is the closing price. If the SP500 can find a way to hold its head (and close) above 1077, I may consider making some purchases. If it doesn’t, we’re looking for a downside test of 1057 of immediate term TRADE support.
Don’t forget that a weak set of US retailer results and jobless claims are due out in the morning, then an ominous unemployment report is due Friday morning.
Keith R. McCullough
Chief Executive Officer