Level 2 Asset Index Macro’s Turned Down Yesterday
The Eureka Macro Asset Index which we keep, had a Level 2 technical indicator turn down yesterday, its first since late June 2012. The Level 1 Technical indicator turned up in September 2009 and is still pointed higher. We use these indicators as backups to our fundamental views and as with all technical trend indicators, are always late to the party, but usually right in the interim.
The S&P 1360 to 1420 trading range that we outlined on October 24th is still intact, and most of the action will now be probably be below the 1390 swingpoint, ie. 1360 to 1390.