Quick Market Update

We have another potential intraday bounce brewing as the EUR/USD turns lateral, here's the SPY

 SPY 1 min -a potential double bottom intraday which should make for a more compelling bounce.

 SPY 2 min the same as above

 Some signs in the SPY 5 min although it is in a leading negative position with a relative positive divergence. The blue area is the gap support mentioned several times already and you can see that is where this bigger potential bounce is forming, near the bottom of the gap support.

SPY 15 min is entering the start of a leading negative divergence to add to the relative negative already in place.

I believe there is to be some announcement out of Europe regarding naked short selling/short selling ban on at least CDS, perhaps it goes further to cover financial equities as well as they try to protect the banking system which has been ordered to raise capital ratios, falling prices make that even harder and much more likely that they continue their strategy of "Shrinkage", which of course would mean that they can raise money as pointed out in last night's post by selling risk assets, thereby raising real money as well as lowering their exposure to liabilities which raises the capital ratio. What EU finance ministers don't want is for them to stop lending and kill the private sector recovery, but for every loan they make, without raising money or lowering liabilities, they raise send the capital ratio in the wrong direction, so while I have not heard of any specific news to ban short selling of financials, it would make some sense that they try that. However, it seems very clear that banks will not raise cash at depressed share prices at 60% of book value so it may be an exercise in futility, but head lines are what matter.