There's still ample downside opportunity before we get a bounce; Sunday and Monday on the e-mini markets are going to be a total madhouse.
With both parties in disagreement on reaching a comprehensive
“Fiscal Cliff” deal that aggressively reduces government spending and raises
taxes, and with the debt ceiling limit about to be breached (and probably
inflated to unimaginable, out-of-control levels), I smell another U.S. credit
rating downgrade coming soon…possibly to ring in the New Year.
inaction/complacency/impotency with power turned over to the Central
Bank” would best describe 2012…for most countries of the
Who’s in charge?
This has been an ugly decline on equities so far, in the sense that there hasn't been much that has developed in the way of trendlines and therefore patterns. That is ominous, as I often see this near the start of a strong trend, before the large trendlines for that trend have started to clarify.
SPX bounced at the daily lower bollinger band yesterday, and bounced back almost to retest the middle bollinger band. A daily close back above that middle bollinger band would look bullish, but we haven't see that yet, and that was at 1422 at the close yesterday: