1. Markets broke through to the downside and just made a small pullback yesterday as they very very oversold and QE3 was brought into the game by the FED but not in real terms yet. SPX tested back the 1260 levels and should turn down again from here heading towards 1150.
The Bond markets have some small margin left on the upside as well before they hit triangle resistance around 134 30year bond future within 1-2 weeks before a sharp pullback can be expected which seems to contradict as stockmarkets can also hit a short term bottom within the next 1-2 weeks as QE3 announcement is imminent with markets down another 5%.
Since the economy is very fragile anyway a dropping stockmarket will kill consumer sentiment and the recession is sealed will be the thinking of the FED therefor the timing is crucial but at the end of the day it will only spark a brief rally for stocks but the overall downtrend has started and will resume. QE3 will be rather counterproductive as a downgrade will be sooner once it is announced.
YEN and Swiss Franc battle will resume for a short while as the FRANC will make new highs and the YEN will go to the 76 level once again before bigger shifts in trends can be expected.
The 400 bil the debt ceiling gives the government right now is already spend almost as they took out 300 bil from various funds to bridge .
Astro patterns get into an ugly mode again short term as Mars enters the Grand Cross which should makes things worse for troubled area’s especially like Syria. Saturn is still exactly square the Natal US Sun and on the natal Saturn/Sun square. Even more evil is the upcoming T-square starting around Oct which will last for months. Selling rallies for now until QE3 gets announced and the rally will be bigger and one should stay out rather until things settle