THE DOT - if this turns orange or red be alert

Wednesday, February 23, 2011

SPX update

In order to confirm the likely correction we need to close below the uptrend support around 1305 today for the SPX - ideal on a weekly close. Gaddafi can not be forced out as easily as Mubarak as we have a complete different setup of power. Almost no US influence the regional warlords are the crucial factor. The Mubarak dive of the markets was before the weekend and things got resolved over that weekend and markets turned up on the spot as America pushed the buttoms. Now they have to ride it out the whole week at least but the real factor for trouble is rather the 'Whitney' factor bankruptcy of municapilities and states accompanied by a budget shut down very likely being an even bigger drag down factor. Also the star stocks like Apple,Amazon and Netflix having trouble going ahead from a technical and fundamental point of view. The weekly 13s and daily counts do confirm a top at place but the price action needs to confirm yet as yesterday was promising but not definete as we need to see how the weekly closes turn out. Astro has worked as good as it gets as some malice patterns are working right now and hyperinflation is rising its head which is the most dangerous factor as it is usually the harbinger of wars to come.

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