Conviction Delivered

The equity markets delivered on the much-needed conviction that was mentioned yesterday -- to the downside. The downside targets I mentioned were mere pit stops on the way to much lower prices. Sometimes a good flush is just what the market needs.

There was also a large down tick (-1430) which may have signaled short-term capitulation. S&P futures look a little perky at the moment due to the reaction from the jobs number. Today feels like a day to be positioned for a bounce. Either side of 1314 on the futures is a good Fib target.

I am more convinced than ever that our debt rating will be downgraded no matter what. Politics is destroying this country just as it did Rome.