With all the info inbedded in the Schilling and Mauldin reports as well as our Inflation/Deflation report on our main site here, it may be well to reread and simplify these Macro concepts into some outline format. I may do this myself in the next couple of days.
In the meantime the short term market seems to want to believe that better days are coming and that will probably mean a little trip above the S&P Trap swing-point at 1454. This could entail a testing of big resistance inside the Trap in the 1460 to 1480 area going into the election. Part of this is no doubt a belief by the market that the Fiscal Cliff will be solved, somehow forgetting that any solution has austerity written all over it.