Monday, June 18, 2012
The Morning Call-'Muddle through' is alive and well and living in Europe
Monday Morning Chartology
Friday the S&P traded through the ‘neckline’ of the reverse head and shoulders pattern---a technical positive. Absent a quick reversal today, the rough objective of this breakout is 1440.
**futures trading suggests that the S&P will fall back below that ‘neckline’. If we close the day that way then the ‘shoulder line’ (1292) is back in play.
GLD has held the lower boundary of its intermediate term trading range quite well. It is also setting a very short term uptrend.
The VIX remains above the lower boundaries of its short term uptrend and its intermediate term trading range (a negative). However, note the developing head and shoulders formation which, if completed, would drive the VIX back to the 14-15 level.
Update on ‘the best stock market indicator ever’:
The Greek’s gave the pro-bail out party a victory. While that party must still form a government and then make proposals to the EU (Germany) for changes in the terms of the bail out, the ‘muddle through’ scenario remains alive and well and living in Europe. Meanwhile, investors aren’t so optimistic about Spain:
Thoughts on the upcoming race for president (medium):
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