[private][private]UPDATE 3/15/11 at 11:38AM: well the DAX has put in a little rally into the close, recovering almost 1.75% from its lows on the day…this has helped the SPX recover a bit…..i am not sure this is the rally to cover on….there is more wood to be chopped in our markets….SPX needs to bleed a bit and we have yet to see any capitulation…we have essentially rallied all morning off of the opening low…..With Asia and Europe closed our markets will be focussed on FOMC announcement at around 2:15 pm and any news out of Japan…..Chart below shows SPX bouncing on its 100 day moving avg this morning, will look for a test of that level ~1259….I still think we have to test 1250.
[caption id="attachment_497" align="aligncenter" width="372" caption="6 month SPX chart From Bloomberg"]
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The DAX (Germany’s Main Equity Index) is down almost 5% this am, a massive breakdown in the index of arguably one of the strongest markets and economy’s in the world….If this thing can’t stabilize this am (this past weeks decline has wiped out 5 months of returns), then the SPX (which is still up 1% ytd doesn’t have a chance…in my opinion)…..one way to track the DAX index (although not exactly) watch the EWG an ETF whose performance is intended to track the MSCI Germany Index.
[caption id="attachment_483" align="aligncenter" width="408" caption="EWG 5 Month Chart---Getting Close to Key Support"]
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