S&P update , again.

S&P sept 12 2012

As explained recently , this wonderful wedge could be the c of an a-b-c wave B. It has been 24 months in the making. Today we got the Constitutional Court decision with regard to what can and what cannot be done. As was to be expected the verdict is trumpeted as a verdict for even more largesse, but in reality Draghi’s promises to do whatever is needed are seriously curtailed by this judgement, never mind the conditions on top of what can be done. Tomorrow, at about 2.15 we will get the second edition of this farce as the market interprets Bernanke speak. It already knows that it will be a good outcome even if no one can decipher the meaning. And then ten minutes into the process the market remembers that good is bad and makes a 180 degree u-turn. After another ten minutes the “plunge protection team”, without ever having seen a plunge ( remember weapons of mass destruction?)decides to turn things around pushing the market to knew highs. But before all this happens Dutch elections will close today and the outcome will be such a cliff-hanger that the cognoscenti on this side of the pond will give new meaning to the term Dutch Disease, but our own Central Banker will counter that by observing that most Elm trees are already long gone.

We will stick to the chart, 1450 is the high, only another 11 points from this mornings high of 1439. Time will tell.