After trading to noted resistances, SPX closing at 893.06 and DOW 8300.02 retracing 62% of the rally which we have seen yesterday.
* Markets are trading near major resistances as previously noted that we are seeing consolidation in symmetrical/descending triangle formations in SPX and DOW while QQQQ and Nasdaq are showing nearly triple top formations. Markets are still trading in the pivotal trading range.
* Markets are too optimistic about economic outlook rallying on massive debt spending which is just same as the misleading economic condition which we have seen during the last decades during when millions of Americans ultimately filed bankruptcies.
*VIX/VXN have risen to 32.36 and 33.16, respectively, as noted on 5/20, reversing from intermediate support. I commented on the VIX/VXN relative to market actions since 2004, and now, Volatility is of course orchestrated to in sync with market actions to manipulate market directions.
* SPX 880+/- and DOW 8200/8000 pivots.
* Markets are trading near at major resistances: SPX 930 +/-, DOW 8600 +/-, Nasdaq 1770 +/-, NYA 6000 +/-
Massive Debt Spending Economy
Misleading Economic data led millions to bankruptcies:
As noted earlier, the Roubini's economic outlook is too optimistic that we will see the end of recession and US economy will rebound in 2010. Our economy since the R.E. bubble/burst is based on massive debt spending so called the "Economic Stimulus" programs. Based on the debt spending, financial markets have rallied 30-40% which is really bogus economic growth.
As previously noted that the 2002-2007 economy was based on illusive and manipulated GDP data reporting better than real GDP. Massive Americans believed in deceptive economic condition using the R.E. bubble which triggered millions of Americans into bankruptcies. Now we have massive debt spending economy which is just propelling deterioration of real wealth of Americans in reality.
The Government reported Economic data is manipulated, so that realistic economic numbers would be much worse, if not, detrimental. Unless we see serious policy changes in our economic fundamentals to produce more goods and to retain jobs in the country, we will continue to see massive wealth loss for massive Americans who are misled just same as in the past decades. In order to recover from the massive wealth loss and to stop regressive wealth, we need to see massive changes in economic policies. Otherwise, it is just massive deception.
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