The collision of global markets and social mood

Tuesday, October 9, 2012

Levels And Bureaucrats

There are two levels that interest me today. Both correspond to Fibonacci and coincide with small bounce areas.  The first is probably the most important: 1460.93 which is roughly the 38% retracement of yesterday's low. The second is 1467.59, roughly the 78.6% retracement.

Getting above the 1461 level is expected. It is also necessary to ward off a quick trip to new lows. A trip to 1467 would dramatically change the pattern, and would suggest further consolidation. A trip above 1461 and then a failure would argue for deeper lows toward 1430.

The IMF is getting a lot of press today. It seems they are trying to get out in front of further trouble in the EZ so they can say "we told you so." Meanwhile, Zero Hedge reports that IMF head Christine Lagarde was just caught on tv seemingly clueless as to what her agency was saying in its report. Sounds about right for a serial bureaucrat.

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