Thursday's late day
ramp clearly rattled some of those bears who are not yet convinced
that we are seeing the beginnings of a major wave lower into the
sp'1200s. Despite the afternoon ramp, the indexes are still offering
massive downside potential.
Sp'daily4
Sp'monthly3b - count
Sp'weekly2, rainbow
Summary
Today no doubt rattled
traders on both sides. The bulls were rattled as we came very close
to taking out the sp'1400 level – although Dow'13k did fall, and
the bears were rattled in the afternoon as the indexes snapped higher
due to another politician saying something.
These sort of crazy
moves are going to be the likely norm for some weeks..if not months
until a deal is finally reached.
A deal WILL be reached
of course, but not before an awful lot of complaining and political
squabbling has played out. Really, it could be some months before
they finally sit down and agree to something.
Mr Dollar to close 2012
in the USD 80s ?
With just two trading
days left of the year, the USD is easily within range of closing in
the 80s. The doomer bears seeking lower indexes in early 2013 should
certainly be seeking a higher dollar, which would really help keep
the lid (at least to some extent) on any crazy ramps, as we saw this
afternoon.
USD, daily
USD, monthly2, rainbow
So, as ever, eyes on
the dollar, and look for the 80s to be re-taken by the Monday/year
end close.
Goodnight from London
--
*please note,
normal/frequent updates are unlikely until my lousy internet is fixed
(next Thursday). I will endeavour..as best I can though.