SPX looks ready for a pullback on both daily and short-term charts.
UPDATE: New equity highs! With momentum looking toppy I didn't think we'd be breaking out on this leg up and we would need another round of consolidation. But we've left gaps all over the place on this up move and that's pretty consistent with a sharp triangle breakout. I don't like either side right now, so it's best to just watch it for a minute.
The Euro would like to stubbornly make another high, thought it is clearly diverging with momentum. I guess because Spain (and Italy) had another "successful" auction, where they were able to sell their debt at a discount as rates surge. Spain's 3-month bills are yielding 1.37%, up from .90%, and their 6-month bills are yielding 1.867%, up from 1.361%. Italy's 6-month yields also jumped to 1.657% from 1.361%. And meanwhile Greece and Portugal are getting absolutely killed. Can anyone tell me how Trichet tightening policy is going to do anything but accelerate the sovereign debt crisis?
