Market Update

 I didn't see any particular catalyst on the retreat, the Euro held above $1.30, the only thing that happened was the a.m.  range was broken to the downside and that is where all the stops would be as the first line of support, the second being Friday's close. Note the sell off picked up when the a.m. lows were broken at the red trendline. The comparison symbol is the Euro.

 The 1 min chart at this stage is positive enough to create a consolidation, it if gets stronger, then a positive divergene and bounce back up with resistance at the trendline above.

Interestingly the 2 min chart was a bit stronger at the second intraday bounce attempt and has remained stronger as it has not confirmed the downside in the SPY.

Strategically we are short so the market falling apart isn't going to make anyone shed tears, but tactically, a bounce would be nice to add to positions. Anyone notice the difference in the pace of events over the last two months? Remember when I was illustrating what the October rally high would look like by showing you a VERY similar chart of the market in 2008? Remember I said we would hit a point of critical mass and the market would be in big trouble. It looks like we are very lose to that point as events are picking up in pace just like in 2008 before the market plunged. This is also why the Model Portfolio has been ranking in the top ten as I have held those bearish positions through some drawdown, but as you know,  have faith in 3C and been in this position many times, I have also added as you know in to strength.

Hopefully we'll get another shot to do so, but this is also why I have been mentioning phased in entries as the fundamentals out of the EU have the ability to knock the technicals down if the right or wrong piece of news hits the wires and with downgrades hitting and a flood coming from the S&P, it's going to be hard for bulls to swim against the tide.

Remember we also have 1/4 end window dressing and redemptions, redemptions should take a toll on GLD as it is one of the only positions many hedge funds have gains in and thus they'll need to sell some GLD to meet redemptions. They would like to sell GLD in to strength, technically GLD is in a spot where they may get lucky, but the lock is ticking and they have the T+3 settlement rule, so the 27th is the last day to make portfolio changes reflected on Q4/their prospectus.