Here's a recap from my notes this week with some context provided to connect what I perceive as the dots. Bottom line is if you are an investor looking for the entrance or exit ramp these days, it pays to extend your timeframes in a listless market such as this. With that said - the prevailing wind direction has been shifting so frequently that by the time it materializes on the charts - it has typically been too late for many traders to duck the boom. I have been able to maintain consciousness by sticking to simplicity in contrasting the several secondary and tertiary indicators that I utilize as reference guides. These continue to be various asset class relationships and like market environments that have colored my near term expectations.
As the debt ceiling debate comes to a head this afternoon, I believe it is wise to keep in mind that the weakness encountered in the market this past week comes from a conglomerate of sources and was more a reflection of a moderating economy than the mexican standoff between our dysfunctional political system. Certainly, it has complicated an already clustered dashboard of issues for traders to focus on. In this regard it may alarm money managers that when the debt ceiling debate is resolved and the market exhales with a champagne rally, it pivots once more back towards the bottom rail of support that comes into view on the weekly charts ~ SPX 1267.