And boom goes the dynamite. The day keeps getting better and better. The Euro's down about 270 pips right now, though we are very oversold on the hourly.
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| EUR/USD Hourly |
Here is a look at the daily charts and some long-term targets,
borrowed from John Noyce at Goldman Sachs. I personally feel that this is a major top and the support at those levels will be temporary. We ought to take out the previous low formed during last year's Euro debt crisis at 1.18.
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| EUR/USD Daily |
The
NY Fed Empire State Manufacturing index came out
ugly this morning. Last month it dropped 10 points, and the consensus was for it to hold steady this month. Instead, it dropped another 20 points into negative territory at -8. Based on the
correlations between the regional reports, the ISM could drop below 50 and signal that the economy is in recession again at the end of the month. Considering that QE2 will also end at the end of the month, things could get very ugly. I'll be watching the other regional Fed manufacturing reports closely, beginning with the Philly Fed report tomorrow.
Today stocks are already trying to reverse all of yesterday's gains, with the S&P 500 having already done so and the Russell close behind.
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| S&P 500 Index Daily |
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| Russell 2000 Index Daily |
