Home > Uncategorized > 2011/08/23: AWAY on Holiday Yesterday and Today… Back with New Post Tomorrow

2011/08/23: AWAY on Holiday Yesterday and Today… Back with New Post Tomorrow

Away on another short holiday break. Like a couple of recent Augusts, this has not been the “Lazy Days”  of Summer that they used to be… and we need to squeeze in R&R during the brief lulls. All of our recent posts still apply to the dysfunction in the markets, and tomorrow’s fresh addition will deal with more about the late week Jackson Hole Symposium than just the mindless fixation on what Mr. Bernanke will say about QE3 on Friday.

In the meantime, the equities seem to be stabilized… at least for now. The most major influence will of course still be from weak sister DAX; and that seems to be informing the market activity not just in other equities, but other asset classes as well. In light of the fundamental drivers for the current round of weakness coming substantially out of Europe, it is not a big surprise that it is leading the way down technically. Yet, as it is holding up for now it seems that Govvies and Gold are finally willing to react a bit to the downside, and the US dollar is back under modest pressure once again… a very mild bit of a ‘risk-on’ mentality

And as we noted previous, last week’s violation of the previous 5,487.82 DAX low still held somewhat above the key lower support. That is more so down at the 5,312 November 2009 pullback low (with a Closing price Tolerance to 5,300.) That is both the low end of the trading range the market entered once it pushed above 5,500 in September 2009, and the significant oscillator support at MA-41 minus 1,700. Much below it the 4,900 area or even lower is likely to be seen before it can base out again, likely with a lot of influence back into other markets from the overall psychological deterioration that would represent.

Thanks for your interest.

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