Courtesy of John Nyaradi
Global stock markets break lower as fundamentals and technical indicators darken
Wall Street Sector Selector remains comfortable with our inverse ETFs, options and cash positions.
After yesterday’s brief relief rally, we see markets sharply lower today, yet again. Unemployment claims show now improvement and the Eurozone continues to boil with accelerating danger in Spain and Italy.
The European Central Bank doesn’t have enough money to save Spain or Italy and the market knows it.
At home, the economy continues to slow and tomorrow comes the all important Non Farms Payroll report.
On the technical front, major support levels have been taken out, the 200 Day Moving Average has been soundly violated and major indexes are now in official “correction” territory. Markets are vastly oversold and so a bounce could be expected and Dr. Bernanke has been strangely quiet. Oil and even gold are down, bonds up in a massive flight to safety with stops being hit in all sectors.
At Wall Street Sector Selector, we remain in the defensive mode, expecting more downside ahead.
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