Wouldn't that be too easy for the shorts if we just repeated last year's pattern? The Market is never that predictable.

It seems these Death Crosses often happen at the end of Bear moves, not near the beginning. This 50/200 Monthly cross indicates the last 4 years have been declining faster than the last 17 years, so one might see this as the capitulation of the Bear which started 12 years ago. What does history show on these longer term crosses?

If they overturn it,  may spark a big rally as Obamacare is supposedly a big reason why hiring never recovered.

RichieD,  The Treasury always continuously rolls over our debt in new debt instruments of varying maturation timeframes, so the time is not getting shorter as long as the Treasury can continue to sell long-dated bonds. In fact, they are now re-financing long bonds at the lowest rates in history.  Also, we do have the means to pay off the debt, but it will be very painful. Specifically, there is over $50T of accumulated wealth in the US, so the US Govt could (if collapse and anarchy and physical attacks on the rich were the alternatives) raise the funds from extreme tax hikes (which is what we did after WW II when we had a similar debt:GDP ratio).  There is also an enormous amount of wealth in Federal lands which could be auctioned, if needed. Still, these are extreme measures which will not be pursued as long as we can continue to rollover our debt. I agree that we will have a huge problem if/when the music stops and the Treasury can no longer sell new bonds. But, whenever I get convinced that will happen (and that the US$ will also collapse), we see that the rest of the developed world is equally bad off, and EVERYBODY runs to the US$ and Treasuries when panic ensues. This will continue to hold true as long as the US$ is the world's reserve currency, backed by our military rather than gold. So, while our current situation bad, it is not hopeless, and Bernanke is doing whatever he can with this terrible situation.

True, but the 1 long-term benefit that nobody seems to discuss is: our enormous national debt is getting re-financed at lower and lower rates. So, all of the doomsayers who say our national debt's interest payments alone will eventually crush us are missing the saving grace of this continuing crisis. I am in no way defending any of our policies - simply pointing that a better analogy is we keep getting new credit cards with lower interest rates to pay off the existing balances which does offer some benefit to the debtor (us).

http://www.mcoscillator.com/learning_center/weekly_chart/

"The strong breadth numbers on the NYSE have produced a reading of +164.60 on June 15, 2012. That is above the +150 level that has been marking an overbought threshold in recent years, and thus it indicates an overbought condition. But at the same time, it also signals strong upward initiation for this new price uptrend. It does that because this overbought reading occurs within a complex structure above zero, which is a statement that the bulls are in charge."

Since FB will sell about $15B tomorrow, and since buyers had to raise cash to allocate to it, is it possible this raising of cash contributed to the recent market decline (in addition to the EU situation and technicals etc.)? Is $15B a large amount of outflows? If so, perhaps the combination of that selling pressure ending today plus the current oversold conditions and Wall Street's desire for a good flagship IPO might trigger a nice rally soon. Thanks.