3. Markets made even a little sell off with high future volume exactly to the support thresholds around 1307 SPX and 2375 for the NDX future that is so far a almost perfect week 5 ( countertrend ) as expected and with a little zigzag the consolidation will carry on for a few more days. Amazon who had no real ass kicking earnings and are one of the most expensive stocks out there still made new highs confirming an 100 year old rule by one of the best traders ever Mr. Livermoore, once a big handle is broken expect a least a 10% follow through.
EURTRY also reached my 2.50 target yesterday and very likely is just producing a perfect weekly reversal.
Here a very interesting chart showing the astonishing relation between debt ceiling of USA and Gold
This Time The Debt Ceiling Hike Really Is Different
Submitted by Tyler Durden on 07/27/2011 10:43 -0400
Yes, indeed it is. While everyone and their grandmother is foaming at the mouth how both republicans and democrats hiked the debt ceiling for umpteen times over the past x years, the truth is that never before has the ratio of the proposed debt ceiling to the tax receipt ratio been as high as it is now. At nearly 6 times, this means that the top line (forget bottom line) cash inflows into the Treasury are 6 times lower than the current debt ceiling. And following the upcoming $2.5 trillion this number will surge to almost 8 times. So please ignore the next “pundit” who is complaining about the hypocrisy of not agreeing to an outright debt ceiling hike this time around – as usual they have no idea what they are talking about.
There is however one correlation that will continue to trend at 1.000:
h/t John Lohman and Lizzie363