Market Update. Charts of SPX, DAX and Gold.

Market was clearly not overly impressed by the Fed. Nothing really new came out, and yes, the economy is not acting healthy. As has been our theme for the past weeks; the market is trapped in a mean reversion trading pattern. Every time people like Biggs turn bullish (after 10% surge), everything reverses. After the sell offs attract pessimists, market reverses right back up, and disappoints the bears. That will probably be the theme for the remaining of the year. Big trends will not brake significantly before 2012, so stay put, and use the contra indicators accordingly. For the ones that watched ES futures trade today, we could note how orders of some thousand mini futures totally “emptied” the order book. Welcome to the HFT dominated “liquid” Stock Market. Charts below;

SPX. Still within the negative trend outlined several days ago.

DAX. Continuing the trend down. Central planners action is gone….

SPX Daily. Much ado about “nothing”.

Gold Weekly. Many ask us about gold. Gold is still in the long term trend. Although somewhat overcrowded trade, we would like to see how it breaths some 100 usd lower.