The Euro/US bank lending rate (TED Spread) increased above 23.67 this morning, and has created a short term uptrend. Risk implied by European banks (bailing out Greece, riots in Greece, and "Who's next?") is raising fear. A break above 25 implies further bank/lending stress. It is likely Portugal's dirty laundry will be aired soon. If the other shoe to drop coincides with a break down of the TED spread, expect that climax-sell day's low may become a support point.
The Fear Barometer for the past three market days (4/30-5/4) has held around 23.02-23.09. During those market days we have seen one of the largest intraday up days and a complete reversal, leaving the Q's 5% behind. A break in the Fear Barometer's pattern may indicate a reversal to long or start of a short term ranged market forming.
No comments:
Post a Comment