The markets have been holding on to this delusion that somehow the ECB was going to come to the rescue of Europe. If that is the case, this morning's announcement from the ECB that it plans to do absolutely nothing with regards to rescuing Europe, brought markets down to reality. Bulls are insisting that the ECB is not going to show its hand while politicians meet tonight in the latest meeting. Still you have to ask yourself that sometimes when it acts and quacks like a duck, IT IS REALLY A DUCK! If the ECB says we are not going to backstop the Eurozone debt in any way shape or form..it probably means it. Still there is a meeting tonight, and given the fact that any headline that gets floated this afternoon could move the market rapidly, an up close from here would not surprise me. Lunchtime has the dow down 120 and off the lows of the day.
I thought i'd throw up 2 charts of the S&P. Notice we have a potential double top here short term as once again the 200 day moving average turned the market south. Notice also that the 50 day moving average lies also where my fibbonacci moving averages are located..between 1220 and 1230. So there is a ton of support here underneath us.
The mlp index meanwhile was turned back at 375 and its down 4 points on the index. The chart here looks much better overall as the index holds above its 200 day moving average. The index is being dragged by a 9 million share offering from Enterprise Products Partners (EPD) which makes up a big part of the index.
So we are at lunchtime here on Wall Street. The Euro summit begins this afternoon our time. Here is a live blog thanks to the Financial Times. BTW crude is selling off and this is putting pressure on energy stocks in general. It should be a fascinating afternoon. Don't be surprised if we see a rumor that takes the market off its lows like it yesterday at 3:15pm. Someone refloated the IMF will rescue Europe rumor which was denied but it took the market up 120 points in a big hurry. Nothing is real!