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Another options expiration with shenanigans, and a downgrade to Greece sovereign debt that roiled the market mid-day and triggered a bit of a flight to safety.
The markets generally ignored the financial crisis as it unfolded, and stocks were largely unchanged on the weekend before the collapse of Lehman Brothers took the markets down hard. I do not expect the next financial crisis to be anticipated any better by this market. Price discovery and efficient capital allocation is not possible in a system permeated with fraud.
Let's see how the Asian markets open on Sunday.
Here is what I am watching in US broad equities in the May option expiration. There is support for the SP around 1321-1324. If it breaks that and sticks the close there might be something to this, moreso than the usual option wash and rinse.
On the NDX chart the intermediate uptrend is more pronounced with strong support at 2330.
Update at 11:10 - FITCH DOWNGRADES GREECE TO 'B+'; RATING WATCH NEGATIVE
Fitch has downgraded Greek debt, which has caused a flight to safety in the dollar and precious metals.
The Chart That Should Accompany Every Discussion of Deficits - The Atlantic
Obama shares a significant portion of the blame, contrary to what the Atlantic may be implying. But the sources of the financial collapse and deficits are identifiable, but little discussed by the corporate media.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery.
