Courtesy of JESSE’S CAFÉ AMÉRICAIN
In case you were wondering the SP ‘sell signal’ was clearly confirmed by yesterday’s chart.
I would look for this decline to continue down to the 1130, maybe 1120 support level, basis SP 500 June futures. Perhaps not a bottom but at least a relief rally or bounce as you prefer. I won’t be getting in front of it, again, given the bias of the sell signal.
The Non-farm Payrolls report might modulate the trend, but not necessarily change it. Sovereign default risk fears is the driver. But the US economy pretty much sucks as well despite what the statistics say. It looks to be headed for a double dip. But for now there seems to be absolutely no discussion of this, or the risk of default of individual states, some of which are larger than most countries. The US Debt- GDP ratio is north of Portugal’s and climbing fast.
Short financials and long gold but less short now.