Today is probably going to be an important decision point for the market, as the Fed comes out with its FOMC minutes at 2:00 EST. The past few days, we have been "stair-stepping" down, with the market trying to put together a little rally but being turned away, as illustrated by the horizontal lines below:
The area I've circled, though, is what really counts. Since June 4, the market has been in more-or-less of an uptrend, and we are very close to the trendline today. I imagine that whatever the FOMC sputters in its minutes will drive the balance of the week, either snapping the trendline for an intermediate trend change or firming up and reversing as it did late in June, when the 21st Summit Bailout took place.
Incidentally, a thoughtful Sloper was in Beijing and took a picture of the admonition below. Wise words!
