Half Interesting

Friday was half interesting in that the S&P gave one clue rather than two. 1388.14 was exceeded, which was step one in showing if the move from 11/6 was an impulse or not. The clincher would have been 1403.03, which, if exceeded without reaching a new low beforehand, would suggest that the move from 11/6 was corrective.

1403.03 is what I'll be watching today, along with 1373.03 below (the 3.03 thing is interesting). A break of the latter would first have me look for a marginal low, possibly just below 1370. Otherwise, there are a cluster of Fibonacci targets from 1336-1350. That's wide enough to drive a truck through. Another Fib extension drawn from Friday's high projects to 1350 and 1360, so 1350 pops up again.  I also could see a bounce to the 1393 area.

Failure of these levels to hold would cause me to pull out that A-B-C chart that targeted 1318.87 and 1222.68, but I continue to think it's a bit extreme.

Extreme is what is going on in Greece with the Golden Dawn party. This far-right, neo-
Nazi-style political party serves as a warning as to what can happen when social mood causes polarization to go to extremes. We may be a deeply divided Red-State/Blue-State nation at the moment, but Golden Dawn gives us a glimpse into the future, and its rather bleak.

Greece's far-right party goes on the offensive

Ilias Panagiotaros, a Golden Dawn lawmaker and spokesman, explained the party's appeal. "Golden Dawn is the only institution in this country that works. Everything else has stopped working or is partially working," he said.

"Golden Dawn's target is simple. We want the absolute majority in parliament so we can replace the constitution with our own," Golden Dawn lawmaker Ilias Kasidiaris told a crowd. "It will then be easy to immediately arrest and deport all illegal immigrants."

"We will seal the borders but do it properly, not the nonsense they are doing now. Then we will immediately deport all illegals," he said. "Although, when we come to power, they'll leave by themselves."

Socionomics suggests that extremely negative social mood produces intense xenophobia as well as a political desire to "throw the bums out." Greece seems well on its way to confirming it.