Credit and Economic Indicators suggest SPX to fall significantly
Updates of some significant Economic vs Markets Charts. All in all, the credit markets are pricing in a somewhat more “realistic” picture of the Economy, where credit spreads etc all imply a significantly lower equities prices. While many of the European and Asian (check Hang Seng) indices have collapsed during the last months, the US markets have held up “stubbornly high”. The SPX index has been forming a rather big formation suggesting a significant sell off, if we are to break down, check here. It almost looks like somebody has been supporting the SPX chart, but this one is running out of bullets…All charts by Macro Story.
Copper vs SPX. Last time Copper traded here, SPX was close 1000. See our post earlier this week, Dr Copper and SPX.
For all charts continue below.
American Discontent
Increasing anger, discontent and a rise in financial concerns. This is not Greece, nor the MENA region. The ever increasing polarization of the US society, is making USA vulnerable to social unrest. Below is graphical representation by Visual.ly of American discontent, according to the Pew Research Center:
Similarities between Morgan Stanley and European banks?-Why are CDS prices shooting higher?
While some of the European banks managed to crawl higher (at least a few days), Morgan Stanley has been selling off heavily this week. As the exposure towards the European banking sector seems rather huge (and we can only wonder where the exposure is marked), we have also had a rather dramatic uptick in Chinese CDS prices. Morgan Stanley, highly exposed to both the European banks and an aggressive exposure in China, is feeling the heat. Tim Backshall of Capital Context gives his recap on CNBC.
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