Comments and outlook for 07-14-2011

If you had looked at the futures yesterday after the close (after Moody's put US treasuries on a watch) you would have thought today would be a big down day.  I sold some QID about $1 above the close. Yet, this morning the market looks flat to slightly up.

Here is a visual:

Looks like the 34TD cycle is down.  The 22TD cycle should be bottoming by/before the end of the week.  Some of the shorter cycles should bottom during the day.  Based on this visual one might expect some weakness mid day and some recovery by the end of the day.  So flat to slightly down would seem to be the most likely outcome for the day.

GL traders. Do your own analysis.  Take a look at Shadow's comments.