More of the same, markets will react to the rumors from Europe.
Copper’s 6% fall yesterday is an indication of underlying weakness in the global economy.
China is to allow provincial and city governments to issue debt directly for the first time in 20 years.
VIX closed at 34.78
Market Behavioral Analysis:
The Euro plan will determine the markets direction for the next 3 months. It appears that 1225 on the S&P will old unless there is news of a significant rescue plan from Europe.
S&P Pivot is 1225 if we can close above the next target would be 1275
The bottom line remains that we are in a generational (Kondratieff Cycle) credit destruction, correcting 50 years of over spending and excessive borrowing. The Fed and ECB are and will print fiat until the conflagration burns through all savers wealth.