The S&P is Down 1.5% on Global ZIRP Deflationary Forces (ZIRPflation)

The S&P is down 1.5% (SPY) after QE wasn't announced by the Fed; serious risks still remain with the euro and global economy; the Philly Fed manufacturing index collapsed in MayMoody's might downgrade 17 major banks; fiscal cliff risks remain at the end of the year; and people couldn't access Twitter today. SPY, the S&P ETF, might be in for the next wave down here. I'm not going to say that a cyclical bear market has officially been confirmed, but there's nothing wrong with bearish bias, technically. SPY couldn't break above the 50 day moving average recently, so if market gravity still exists in this ZIRP deflationary world supported by Central Banks, SPY could retest the 200dma and June 4 low of 127. It is interesting that gold is getting killed as well.

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