Possible Buy Setting up

Last night as the Asian markets were down across the board in response to the looming US shutdown, CNBC's Bernie Lo uttered something eerily prophetic.

"All the markets are out of money this morning."

It was a humorous quip delivered off-hand, but could end up foreshadowing the not-too-distant future. There is simply not enough central bank liquidity to outrun the forces of debt liquidation. That is why, in this country, money velocity is near zero and the Fed is scared.

Interestingly, Asian markets largely turned around to the green, as they should, because our political problems are not really global ones. Europe is mixed. I continue to think that the market may be in the process of hammering out an intermediate low before finishing its topping pattern.

Friday filled the upper gap. Now the 50dma looks like it will fail, and the 1671.71 gap will come into focus, possibly along with the 61.8% Fib retracement at 1666.94. So the political clowns will have plenty of fearmonger fodder.

Volume did expand on Friday but is still nothing impressive yet.

One thing I'm noticing is that the current darlings (TSLA, AAPL, LNKD, YELP, etc.) are solid red today, so there appears to be a slight shift in risk appetite that may or may not be spreading. Today will be a good day to watch the bigger picture. I still think a buy is setting up.