Monday, October 10, 2011

Before the Bell10/10/11



The Market

Technical

Monday Morning Chartology


After a roller coaster week in which the S&P broke below its August low (1101) then rallied and broke the descending short term down trend upper boundary, it fell back closed right on that boundary (1155) on Friday. Today will tell us a lot about the strength on the short term down trend.





GLD remains within its intermediate term up trend, though admittedly near the lower boundary.




The VIX continues to trade at elevated levels within its current trading range.




Fundamental

Over the weekend, Merkel and Sarkozy said that they had a plan to have plan to ring fence the EU banks; plus the Belgian government took over Dexia--both mildly positive. Markets are up. There are skeptics:
http://www.zerohedge.com/news/guest-post-uncredible-dog-and-pony-show-merkel-and-sarkozy