So far so good. The low may hold and a closing above 16331 today will help to relieve the selling pressure. A closing above 16660 will signal that we may see a further upside into the week of 11/03.
Keep in mind this is a bubble in government bonds – not equities. Shaking the tree in equities sends cash running into government debt. That is where it has to be to really create the most damage on the downside. The problem is in government – not the private sector.
While the economy is still growing, it is slow. Unemployment remains at about twice the level before the 1929 Crash began and just looking around you see a lot of available office space. Liquidity is down and this all warns that the upside in the economy is not as great as it should be so when it turns down, it will do so much harder.
