The collision of global markets and social mood

Thursday, July 12, 2012

Lots Of Divergence

Futures got nailed last night.  Maybe because overnight deposits in European banks fell to the lowest level in seven months, or maybe because all those bearish forecasts I've seen in the last 24 hours are true.  The point for me is I'm still not seeing the strength to the downside that would make me agree.  I'm simply seeing too much divergence.

A/Ds, volume, and IYG, JNK, and HYG vs SPY all say to me that something is not right in bear land.  Nonetheless, 1334.40 did break yesterday.  1309.27 is the big spot, which if broken, would likely spell doom for the type of fake out rally I was expecting.

But if 1309.27 holds, 1374.81 immediately becomes the next target in my world.

My world takes me to the dentist today.  I hate it when I miss work, but having nice, healthy teeth is too important.

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