Updates

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The S&P has been weak and shrugged of the consistent tendency (so far anyway) to make gains on the Fed announcement day. There are some sectors like housing that are at new corrective lows also. So that either could be a bullish divergence in that the broad market is not at new lows, or a bearish leading indicator that the major debt sectors like housing and financials are pointing to the market's future.

There is an unfilled gap up at 1060 on the S&P (106ish SPY) that I am looking to see filled before any significant upside reversal.

The FXY trade is off to a good start and I expect to move the stop up on it relatively soon. Also, the US dollar index corrected to its lower daily bollinger band and looks set to move higher. If this is the case and the US dollar and the Yen move higher, I would anticipate further substantial lossed in stocks on a flight to the largest safest currencies and fear of further debt problems.

Also, on a side not that is not relative to any of our open trades.......If you look at the technical indicators on gold, there are multi time frame bearish divergences right now. So take the RSI for example: there is strong bearish divergence on the monthly, weekly and daily time frames. The MACD is not divergent on the monthly but is very strong on the weekly and daily. From a purely technical perspective it seems to me that gold will make a strong correction pretty soon.