PRODUCTION FALLS BELOW CAPACITY UTILYZATION

Be a casual observer.....what do you see in the past when that occurred?

Years late 1999....and 2007......

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NOT MUCH RECOVERY HERE

And yet the FED and friends will continue with their destructive interest rate and QE programs which are causing an even greater them and us VOID.

In a "REAL" recovery, you wouldn;t expect to see a chart like this. Just one of the reasons, IMHO I think the Bear is not over.

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TEST OF THE BREAK?

Price stopped right at the outer break of trend line, nothing is for nothing. My gut says, we rebound some, but a break now or in a few days of the upper line could spell trouble

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ISM INDEX FALLS BELOW 50.00 to 49.00

As a "casual" observer, what happens in the past when the ISM INDEX falls below 50.00?
 (economic retraction) and how does that line up with past market tops?

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NIKK COLLAPSE JUST BEGINNING?

Fall to 10,000 area very possible, as NOTHING was holding this thing up.
Watch the interest rates.....

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HAS BOND BUBBLE BURST?

IS THIS THE "BLOW OFF" TOP?

Remember that this top was formed with rates RISING, an ominous warning IMHO.

WILL HUGE LOSSES in the Bond Market force those leveraged to stampede OUT causing a rate accident?

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LONG TERM SPX CHART TO PONDER

Is the recent splurt above wedge a "throw over", and would a fall back INTO wedge (below 1600) put this pattern back on the table?

If you think the market has either one more huge push up to make or has MUCH further to run then you don't even consider such patterns.

WHat has changed? late Friday selloff where traders don't want to hold for Monday? What we can see with our own 2 eyes is that BOND prices are falling (yields rising) with stocks, and commodities and that is new.

Rates are rising, so where is the flight to quality? FED has been sopping up $45B in demand a month. Their goal is to keep long term rates DOWN, so why are they rising? Where would rates be if there wasn't artificial $45B a month plus another $40B MBS.

Answer is FED controls ST rates, rates are still relatively low, but way off bottom.

JAPANESE MKT has turned very volatile, what a mess IMHO.

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