We’re all wrong about the bull market (Marketwatch)
The CIA’s New Black Bag Is Digital (Foreign Policy)
Wednesday – Waiting for the Fools on the Hill (Phill’s Stock World)
Samaras fehlt die Vision (Frankfurter Allgemeine Zeitung)
National debt to rise without further cuts, says report (Guardian)
CAT Dead As Chanos Says “Best Short Idea” (Zerohedge)
S&P has managed to erase the losses of the May-June period and deviated outside of the bounds of its secondary upward channel yet again.It lies now very close to its all-time high of 1687.This is set to provide the strongest resistance as we move to next weeks’ trading session.RSI is close to the 70 mark but more significantly the price is moving beyond the upper part of the Bollinger Bands-past experience for the S&P indicates that a short-term correction should be expected.Whether this will come before a new all time high is set,is difficult to tell.
Oil(WTI) has confirmed the reverse head & shoulders pattern as predicted in our previous post a month ago,albeit not reaching the 110$ mark yet.It is likely that a healthy retreat and consolidation near the 103-106$ price range will occur.An RSI reading above 70 and an equally high reading of the MACD support this scenario,but setting aside the technicals,geopolitical tensions in the Middle East and the problematic outlook of the global economy as portrayed in the latest report of the IMF,complicate the picture.