THE FLIP

Markets have flipped to red on the heels of the Big Ben comments on deficits etc. Poor George W. must be a little ticked off now as Ben says:


Bernanke -spending on social security, other programs to put 'enormous pressure' on future US deficits.

Bernanke - Unless budget action taken early, unfair burden to be placed on future generations.

Bernanke -if tax rates to be kept low, must be special emphasis on keeping spending down too.

Bernanke - Economic growth alone not enough to solve impending U.S. fiscal problems.

Bernanke warns on potential for 'vicious cycle' with budget deficits fueling debts, interest costs.

Bernanke says U.S. Economy in 'calm before the storm' before entitlement spending surges.

I guess Big Ben is not big on the "we will grow out of deficits" approach.

Anyhow, the markets have moved lower on what appears to be the end of goldilocks as the DJIA is down 20, NAZ down 26 and SPX down 4.

The major indexes have held the first points of daily resistance at 12,550 on the DJIA and 1,425 on the SPX. Not sure they will hold the rest of the day but I will be watching those levels for support. The pivot on the DJIA is 12,580 and 1,431 on the SPX, so if we get back above those levels, well we will see.