Euro broke Nov. lows of 131.76. Still holding Oct. lows of 131.19.

The bears r strangely silent this morning across the internet. They seem stunned. The gap may just hold. Here comes the melt up????

Looks like the $$ has fallen thru the 200 day. Could be a false break. Will have to watch.

Take care & be safe. Here's the news.

China's preliminary August manufacturing PMI came in at 49.8 compared to consensus of 49.3 in the prior month -- this is the first increase in two months and comforting in the face of the eurozone banking crisis and the volatility of the world's stock markets. The print implies full-year Chinese growth of about 8%, which would qualify as a soft landing to most. (The recent drop in oil prices and a moderation in food prices tightening in China would be a plus for risk assets.)

In Europe, the August composite of service and manufacturing indices held constant at 51.1 (well above consensus of 50.0). Though at a low level, the print is still consistent with positive economic growth and markedly different to the chaos in the eurozone stock markets. Orders were slightly lower, but the employment component was solid. Manufacturing was 49.7 vs. 50.4 in July while services were flat at 51.5.

Did someone from the Fed say something today about a possible QE3 announcement? I keeping hearing about a QE3 announcement.

mrab - I agree. It is the only catalyst out there. And, it may happen as expectations are so low. Also, market is at extreme with 8 down days. I read somewhere today that the Dow has been down 8 straight days only one time since 1990. That was in the fall of '08. Dow rallied 10% the next day. (Another catalyst could be China announcing that it is done tightening.)

We have broken all daily support that Matt & Steve's charts have shown. We broke the neckline of the H&S top. We broke the rising trendline from March 09 on the S&P. And. we broke the lower TL on the A-B-C-D-E wave triangle. But, 8 straight down days is very rare. What now Marketguy? 

Fitzpatrick is a momentum player. He relies heavily on stops taking him out of these positions. His favorite saying is that a stock works until it doesn't. He readily acknowledges that he does not know when that point will be - he always says he will let you know after it happens!!! If you follow him, use stops.

Yes, I found the rather casual "what's the big deal" attitude to be a bit disturbing.

BTU but it has already had a nice run

Interestingly, Doug Kass (like him or not) is now calling the Japanese earthquake the equivalent of QE3. Will have to watch to see if that catches on. The market is desperate for a catalyst to keep going higher.

It's just awesome. Perfect bounce off the pivot - but, how long will the bounce last? Lots of traders want to see that gap filled.

Actually, America is awash in oil reserves (as well as nat gas). Most of those reserves are locked up in the ground because environmental concerns do not allow them to be exploited. Cramer is arguing for unlocking those reserves & moving toward nat gas as an interim fuel especially for trucks as we also move toward alternatives. The "all the above approach"

Nice chart - thx. If this works as it has in the past, GLD should have a multi-week rally. What does that mean for the dollar? It is awfully oversold. How low can it go?

Just heard that there is an expectation that China is raising interest rates this weekend. Suppose to be a hefty hike.

Thx for posting. This guy is truly amazing! I've been waiting for the sequel.

nice chart

this seems to be dated 2/1/10. Budget director, Peter Orsag, resigned in June. I don't think we have a new budget director. From what I gather, we are entering the government's new fiscal year without a budget. Obama said we won't have a budget until after the elections. Pretty amazing!

So, by the end of this week, we are operating without a budget. Personally, I find this very scary considering our debt & deficit levels. Specualtion is that the budget deficit is going to be so huge that they don't want us to know that # until after the elections.

Price has climbed back into the uptrending channels on the 15 min & 30 min charts. See if it can hold the lower trendlines of these channels & see what happens as we approach 1148.59 high. See if there is enough energy to take out 1150.

Hasn't the $ fallen thru critical support @ 79.56? I thought Matt cited this.