Deer in the headlights

This market just can not get out of its own way. There will be no peace until all of the issues hunting it (pun intended) are put to rest.

Vulnerability to anything coming from Europe has reached a level of monumental proportions. Tonight's latest news is that Dexia bailout may get undone. Well, Dexia bailout put 1075 SPX bottom in. If you are long, better have your stops in and be ready to buy SPX way below current levels, if this story is true. Rudolph The Reindeer may need to survive the car encounter first, before we see any Santa Claus rally.

On top of this cheery news, China PMI has come in below 50 tonight. Welcome to slowdown world! Watch copper @ 3.21 for possible support, or it will breakdown to 2011 lows. This is going to let us know if SPX holds 1156 gap fill area or not. 

And what about Fitch US rating downgrade? They are the only ones who have not said a word after 12 apostles had their last burnt turkey supper. (I mean Super Committee failed) Will we get an unpleasant holiday surprise by Fitch? 

Lastly, has FED gone absolutely mad? I almost fell off my chair when I was reading the scenarios of the latest stress test (announced after the close today). How about making our banks prepared for possible event of Moon colliding with Earth? If XLF does not hold 11.83 on daily closing basis, we will see new 2011 lows on it next week. 

Well, this pretty much sums up all of the issues. Illiquid holiday trading will exaggerate anything even remotely resembling what I just discussed.

Happy Thanksgiving! (to my US readers)

Update Nov 23 @ 5:10 pm est

Add a failed German Bond (Bund) auction, 5.9 magnitude quake near Fukushima Dai-ichi nuclear power plant, and State Dept telling US citizens to get out of Syria, to all of the above.