If yesterday was interestng, today was even more interesting. A few more loud cracks in the ice could be heard. As mentioned yesterday, I didn't feel like the market was all the bearish and was not surprised it moved up early. The reversal though was something to behold and raises questions if we make it to the end of the quarter without the market selling off. Massive 1.5% reversal today causing the indexs to finish down. That is usually very bearish in the short term to see that sort of a reversal.
The 7 year auction like the 5 year auction the day before was abysmall. Yields shot up on the 10yr and the 30yr straining against the very top of the trading range over the last two years. If the 10 year breaks 4% at the same time the S&P is breaking 1150 on the downside watch out.
More fission of disunity in Europe. Comments from European leaders made headlines this afternoon. Euro making new lows.
All in all, the ice is straining. 1150 is a good bogey to watch. The market is straining and regardless if it is next week or next year the entire system is looking shakier and shakier. The things that are occuring are the things I have been talking about for months.