The Function Of Form

My favorite story this weekend was EU wants G20 to boost IMF funds after Eurogroup move.

COPENHAGEN, March 31 (Reuters) - The European Union expects leaders of the world's 20 biggest economies (G20) to agree to contribute more money to the IMF in April after Europe expanded its own bailout capacity, EU officials said on Saturday.

Why not just scream from the rooftop "Help! We still can't afford this on our own!"

No one seems to mind this morning. Such is life when the juiciest parts of it are buried in the Saturday news feed. Germany is flat on the day thus far. Spain, however, is down over 1%, while it teeters on the Humpty Dumpty wall.

On this side of the pond, I noticed yet another falling wedge in the e-mini futures in the overnight session. Below 1400 is a pass. Above 1406 is a fail. Two of these failed last Tuesday in the cash S&P until a larger one developed that brought the S&P down 20 points. The mere fact that they're starting to appear, whether they fail or not, is significant. As Victor Neiderhoffer would say, the "form" is changing. By that he means the market's personality may be starting to change. Heads up.

As American architect Louis Sullivan famously said, "Form follows function." The function of the market's ever-changing form, is to fool the most amount of people the most amount of time.

From a larger perspective, the S&P still has many options, while at the present, prices seem a little in flux. I'd either like it higher or lower by 10 or more points before I step in. I had planned to head to Memphis today and let the market do its thing, but my plans changed. Now I'll have to set myself up for Tuesday, possibly this afternoon.