Interesting sentiment picture today …
First …
Barclays issued a “financial storm” warning …
saying:
- that the US Federal Reserve has allowed the inflation genie out of the bottle and let its credibility fall “below zero”.
- There is an inflation shock underway. This is going to be very negative for financial assets. We are going into tortoise […]

Merrill Lynch said its sees continued pressure on the U.S. equity
market in the coming months as it sees the S&P 500 Index as
less than 50% priced in for a U.S. recession that it believes
likely began in January.
U.S. Sector Strategist Brian Belski said that given the
deteriorating fundamental and macroeconomic backdrop, he
doesn’t believe the stock market has […]

Market commentators don’t get it …
They say, that the expiration PRESSURED the markets … WRONG!!!
The expiration held the markets up until the last moment …
after the shorts were covered … market started to accelerate to the downside.
We have now FRESH MEDIUM TERM SELL SIGNALS!!!
And a lot of complacency … why?
Have a look at the VIX […]

Fed seemingly got the message of the ECB …
The message is …
We waited long enough … now you should have your problems solved …
We will start hiking rates … follow or bury the US $
Reckless naughty french boy … Mr Trichet … his friends call him J.C.
Today … two […]

- A very weak economy … not only in the U.S. …
- 2 more downgraded bond insurers, pressuring the financials …
- An rocketing Oil price as Israel sees a strike against Iran and Libya sees a June price spike …
- An hawkish ECB, which makes sure interest rates will rise globally …
- A weak US […]

- OPEC insists, that we should all have sufficient oil …
- fundamentally demand is contracting in the U.S. the first time in 15 years …
- even China has lowered its imports …
- every bullish study and story is told …
So let’s look at the chart … as we know … the trend is your friend […]

As I got loads of requests for the Chart picture of the S&P after yesterday’s DAX Analysis.
Here we go:
Picture is quite similiar … that is “globalization of markets”
As the DAX, the S&P completed recently a bearish Gartley-Pattern …
the corresponding extension targets are:
1300 (bullish case) 1170 (neutral expectation) and 1045 (bearish case)
See CHART […]

The fundamental picture is clear … what about the chart???
When will it be played out???
I think NOW(!!!) … Bears have NOW the chance to crack this market …
IMHO …
From the top, we had ONE move down … many times shortened and stopped by black magic of Ben, Hank and the boys … read: MANIPULATION
Now […]