This could easily become truly catastrophic. The world is in a massive debt bubble and the Central banks are now officially losing control. The stage is now set for a collapse that could make 2008 look like a joke.
The number of major problems hitting the system right now is truly staggering. Off the cuff I note:
1) Egypt falling into governmental collapse and a possible coup.
2) China entering a liquidity crisis.
3) Japan’s economy slowing despite record QE.
4) Multiple indicators flashing “recession” for the US.
5) Corporate profits falling.
6) EU back in crisis mode with both Portugal and Greece facing another round of collapse (with Spain and Italy waiting in the wings).
And those are just the major headline grabbing issues. Those banking on the market rallying even harder have got a lot of obstacles to overcome.
Sounds like news driven doomer BS. If half of it was true and anywhere near what we saw in 2008, volatility would be much higher.
VIX seemed more concerned today with the downsloping 20 day sma than anything out of Europe or the Middle East. We did have a 50/200 golden cross though back on 6/26, but it has a pretty shallow upslope.