Market Thought... "Berlusconi-ed"

Now the world knows how it feels like to be an underaged girl at a bunga-bunga party.

The markets got Berlusconi-ed.

Regardless of the fondling of the bunga-bunga, the markets were also due for a pull back.

Given the magnitude of the Vix spike, the SP500 should find support soon.  An argument for strong support can be made between 1450-1470 via the daily, weekly and monthly charts.

The one good thing that came out of the Berlusconi-cluster-fuck could be a lower Euro, which should help the EU economy.

Barring a credit-event coming out of China, and the US employment data stays healthy, the markets should be okay.  Given the Google Trends on 'jobless claims', the US seems to be okay.


While the markets are consolidating, some interesting trades are developing.

AET - looking for a bounce off the 68SMA.

DIS - looking for a test of the 62SMA.

eBAY - looking for the 90SMA to be tested.