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S&P revised US rating outlook to negative


this is taking stocks down right here
Yeah,
cnbc reports S&P affirms US Gov't AAA rating, but revises outlook to negative

uh-huh
How will this affect the EUR/USD ..
Originally posted by redsixspeed

How will this affect the EUR/USD ..




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6e 06 11 5 min 4182011
FWIW regarding the ES, using Kools Tools and the impulse move off that news from 1310-1301.25, that gives an initial projection of 1295.25 and a full of 1285.5
yea, I see the knee jerk reaction .. but what about long term ..


6e has a strong reversal signal on the weekly ..
How long is long term? Re the US debt situation it feels like the Fed is trying to keep the tsunami from covering the land and they may hold it back for a while but in the long term I think nature wins.

On top of the overdue S&P action, China also said this morning they were looking harder at diversifying their currency holdings. Eventually they will be compelled to do it too.
prest,
those are ingredients for a recipe no body wants to eat.

the biggest fear of this entire monetizing of debt (Fed buying US Treasuries, what's wrong with this picture?)

biggest IMHO, is dollar weakness that forces holders of US debt to bail. it would be like portfolio insurance in 87. a biblical market, selling begat selling (Potential is certainly there, how it unfolds remains wild card)
Originally posted by redsixspeed

yea, I see the knee jerk reaction .. but what about long term ..


6e has a strong reversal signal on the weekly ..


Reversal?


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6e 06 11 5 min 4182011a
Originally posted by prestwickdrive

How long is long term? Re the US debt situation it feels like the Fed is trying to keep the tsunami from covering the land and they may hold it back for a while but in the long term I think nature wins.

On top of the overdue S&P action, China also said this morning they were looking harder at diversifying their currency holdings. Eventually they will be compelled to do it too.

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Through the rest of this year ..
91.25 was the 2.618 projection on the hourly chart (move from 335.75 to 318.75), and it happened to coincide with the low 040s in ym which are support in my charts. If you add to this volume dvg and tick dvg at the lows you can explain the temporary bounce here...
Originally posted by Lorn

Originally posted by redsixspeed

yea, I see the knee jerk reaction .. but what about long term ..


6e has a strong reversal signal on the weekly ..


Reversal?
Click image for original size
6e 06 11 5 min 4182011a


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so far we are about 363 ticks off that bearish reversal pattern in the weekly .. a close above that pattern would be very bullish .. If 6e gets back there I look for selling in that area again ..