4/27 2:30

The stock market has held at critical support.  If the market can hold up through Thursday before turning down in the face of the incredibly bad news affecting Greece and Portugal then I1 will have proved itself yet again.  I personally do not see how the market can hold up until then, but I1 has surprised me a number of times in the past. Critical support is still at 11,015.
S&P futures also have a critical support framework that I use.  The 85-hour M/A less 1.65% on hourly closing basis is just as important as the DJI support mentioned above.  Currently this level is 1185.50 on an hourly close.:

The S&P is the only major index that broke last Thursday's low.  All of the others count a completed 5-wave from Thursday, but this only opens up a potential extension into new highs.

Greece has unethically misrepresented it's financial condition for a decade.  Watching congressional grilling on TV has brought on the following thoughts:

I don't believe that GS did anything unusual during the mania. Even though I believe that GS is a pool of unethical sharks they were merely the smartest sharks in the pool and gamed the system better than their peers. The Community Reinvestment Act, Fed policy, and the absence of any credible regulatory agency created the environment. The eventual financial reform legislation will do nothing to cure the cause, but it will remove tiers of assets from the world money supply. The collapse of ethics has gradually redefined money as debt. This is the biggest scam of all and the longest to play out.

The reason that ethics is important is that societies do not survive the collapse of their ethical foundations. The U.S. has been on the slippery slope for 75 years, with an accelerating rate of decline. I'm watching the testimony and any ethical question receives the same baffled, stammering reply. The GS execs testifying have no ethical framework and therefore perceive the questions as from a different planet. However, they are no different from the questioners, who play financial games on a much larger scale. The ethics of fiat money is this: fiat money leads to the eventual collapse of the ethical foundation of the society.


Another act will be passed to nudge people to do incredibly stupid things until the government is forced to change. The regulations you speak of and the life-support that FHA is providing are the next incarnation of the Community Reinvestment Act and will end badly as well. Health care, anyone?