The US markets were moving lower after a warning by Intel on their forecast. As you may recall I had said last week that my tech sector information was that sales were going to be weak. This has nothing to do with a lack of hard drives, which was the excuse presented.
The stock markets are still within their triangles and I would expect them to stay there unless something really happens to break them lower. The reason is the huge vested interest that the Street has in getting the Zynga IPO out the door, along with a few other IPOs this week.
But Zynga is significant because it sets the tone for Facebook. Zynga is virtual and produces zynga dollars and fun games, and Intel produces products for the real economy. The divergence is interesting.
FOMC issues its last rate decision of 2011 tomorrow. I am not sure I expect them to introduce QE3 at this meeting. It may already be underway with the de facto flow of swaps to Europe. But typically they do not wish to take such an action in a Presidential election year.
Let's see what happens.