sp'monthly1b
Trans, monthly
Summary
*the 'old leader' looks dire, headed back to the 2012 breakout level of 5500 or so.
--
So.. regardless of how tomorrow closes, we're seeing important downside follow through.
At best, the equity bulls could make a play to test the monthly 10MA, but as of next Monday's open, that will probably have declined to around sp'2000.
Sustained action >2K looks out of range for many months.
--
Looking ahead
Friday has a rather important set of econ-data points..
Q4 GDP. Market is expecting growth of around 1%. That is of course much lower than consensus from just a month ago.
Its possible - based on other data, that Q4 will come in fractionally negative. In any case... the US, and broader world economy continue to have building problems as a result of the ongoing collapse in commodities.
--
Other data: Chicago PMI, market is expecting 45.. which would still be well below the recessionary threshold of 50. Any print <50 should have everyone at least concerned. A print <40 should sound alarm bells.
Consumer sent', employment costs
*Fed official Williams is due to appear in the afternoon.
--
Goodnight from London