Technical noise/Fighting the last war

With triple witch expiration Friday, where the open interest in the 900 strike in the SPX is huge and within just a few points of the 200 day moving average, the Russell rebalancing next Friday and only a few weeks before quarter end, there will be a lot of crosscurrents that will impact market activity over the next two weeks that will be more technical in nature than anything else. Shortly after his sales performance in China, Geithner today defends the administration’s plan for a new regulatory regime. Fighting the last war is typical of politicians on both sides of the aisle and this time is no different. Until authorities understand that reckless and unstable monetary policy got us into this mess, the possibilities of booms and busts will always be with us. Jobless Claims and the Philly Fed survey are key today. Claims are just shy of falling below 600k for the 1st time since Jan. May UK retail sales were weak and is pressuring the FTSE.

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