1. Wave 5 of 3 is reaching the final stage today or Monday with marginally new lows around 1100 SPX, diping a bit below. We have Jackson Hole deja vu allover again as Bernanke may release a QE3 to save the world only this time it will not nearly be as effective. The market pattern though confirms that something will turn markets briefly next week. The only obvious fact about the 1 year is complete and utterly failure of the FED and DC to get America out of the depression. Instead almost a perfect repetition of Japan comes into play as 10 year Treasuries have dropped to 2 %.
The FED makes interesting plays right now as the article in the WSJ about them examining the exposure of EU banks liquidity situation sparked the sell off besides the confirmation of another official recession by horror economic figures. Probably the 3 members of the board who voted not for the last stimulus need to be impressed in order to activate their support and public support. Something will bring the final dip for the Dollar short term before it will rise as the Chinese buying of EU assets has been a severe wrong move medium term. A new artificial currency does not do the trick anyway