The tape this morning certainly has the feel of something big. There are 2 realizations that may e finally setting in. The first is the Europe is not going to do what it needs to do because politically it does not have the will. Plain and simple. The sovreigns are bankrupt and i think that its going to take one headline at the wrong time to push this all over the edge. Commodity markets are crashing today. Gold is down 80 dollars today and under 1600. Someone is selling because they need cash and that means that there is some major institution out there under stress. The second realization is that while we are in better shape here relatively speaking, this idea that we can somehow stand alone while the rest of the world implodes, to me is just silly. We saw alot of the same logic pass in 2008 and we know how that ended.
The charts are not looking good. Short term double tops are in place on the S&P 500. We took out all the fibbonacci support this morning. The 50 day moving average is getting has been taken out. 1200 is the next stop and we could get there in a big hurry. After that its 1150 and then 1100. Its not looking good.
The mlp index has been the standout of strength but we are seeing signs here that we may be at an end of this. The index is down 4 right now and moving in line with energy as oil is down 4 dollars. When you have to sell..you sell what you got. The weekly chart shows what could be a long term double top being put in. We should watch that development carefully.
I have thrown up the nasdaq chart to illustrate the worst looking chart in the group as it is breaking down and gone into sell mode on the technicalls. Its not pretty out there.
Most mlsp are down major fractions to a point. Cheniere (LNG), Holly Partners (HEP) Alliance Resource Holdings (AHGP), and E V Partners (EVEP) are all down 1 or more with EV the biggest loser on the day.