Solutions And Destiny

Something is in the middle of its overnight range again as Bloomberg kindly reports:

Central banks intensified warnings that Europe’s failure to tame its debt crisis threatens to roil the world’s financial markets and economy as Greece’s election in two days looms as the next flashpoint for investors.

Monetary policy makers from the U.K. to Japan and Canada sounded the alert about potential fallout from the single currency bloc’s troubles. They spoke as Group of 20 leaders prepare to meet in Mexico next week amid the weakest international economy since the 2009 recession, with a video call for European heads of government scheduled for today.

So very kind and service-oriented of Bloomberg to shepherd this sort of pre-packaged information -- otherwise known as a press release -- to us. It feels a lot like Hank Paulson's pitch to congress that the world was going to end if he didn't get a blank check for $700 billion. His world might have ended, Goldman's world might have ended, but the rest of the world would have simply been relieved of one less group of money changers.

Once again it feels as though another problem-reaction-solution is being floated. The solution has long been planned. The problem is merely the opportunity. The reaction is amplified and broadcasted for maximum effect -- the ultimate effect being the acceptance of the pre-determined "solution."

By all means have plenty of cash on hand. By all means divest yourself of as many assets as you can while their value is still high. But do not think that the world will end because a bright spotlight is revealing the absurdity of central banking. Their world, their practices, their illusion may be coming to an end. But hopefully that will cause citizens around the world to wake up and take back control of their financial destiny.

I still believe the S&P has a date with destiny at higher prices.  Futures, while in the middle of the overnight range, have held above yesterday's close.  As noted on Twitter, there is an internal trend line that projects to 1345+ and also lines up with a re-test of the 50-day moving average currently at 1349.52.

There is plenty of air below the market should it want to back fill.  But the 38% Fib level has held well.  It is up to the S&P to succeed or fail at higher prices.  To me, it looks and feels as though a rising wedge is in play.  I would be mindful of 1310.51, however.  Should it fail, the market could test the 1290s.