Good Evening (in Alfred Hitchcock's voice),

Let's get right to it, we were saved by consumer confidence. But, CHIPM came in weaker than expected, as did the EMPLOYMENT component and even more so, the new orders index (which plunged).  We would have opened and stayed down if it weren't for consumer confidence hanging in there, but since this is a lagging indicator (the stock market was much higher when this reading was taken), I see it dropping next round, so in effect, it is a lagging indicator.

We also received the FOMC minutes which "need a severe drop in economic activity" to warrant further stimulus. How far will we drop/recess before that happens? Quite the conundrum Mr Fed! Tomorrow the economic calendar is packed as well, so stay tuned.  

To the charts: only 126 pips away from the goal of 1.5200 (really looking at 1.5000) in the GBP/USD:

The only strong currencies right now against the dollar are the CHF and the JPY, but are we at a turning point in the JPY trade?  If so, what the heck does it mean? When equities are weak, the JPY is strong, do these charts mean the JPY is going weaken and equities will hang in there?

Moving to equities, take a look at YOUR watchlist. I have a feeling that most of your charts look like the SPY, where they can not get off their low. I still think we have a chance of holding at the next support level at 101.5, but I do believe we will get there, which is still another 3.8% below where we are at right now.

The bottom line is, I am not buying here, but depending on where my watchlist is when the SPY gets to 101.5, I may do some bargain hunting (with stops in case 101 is busted).  Unless unemployment is a disaster, I see us bouncing there (temporarily if economic data worsens) and we don't see measures by the Fed as they mentioned in the above mentioned meetings.

And what a great way to end this commentary - looks like it all comes down to J-O-B (Ice Cube's "Friday").

For all of you that want more detail on how to prepare for this type of data release:

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