The S&P futures are doing what they should have done yesterday, trading down, in light of the poor market breadth following the sharp selloff in commodities. Stocks have risen since late Aug in lock step with commodity prices and one shouldn’t expect a correction in one without the other. European stocks are down sharply and the Euro is lower as well after the Swiss central bank said they will no longer accept the debt of Ireland’s largest banks as collateral for repo as their credit ratings are below the SNB threshold. Also, Portugal sold 6 month bills at a yield of 3.69%, well above the last one sold on Sept 1st at 2.05%. Indonesia left rates unch as expected at 6.5% because even with rising inflation, they are afraid of more capital flows that would further boost its currency, a dilemma the weak $/Fed policy is causing for many emerging countries. ABC confidence fell 1 pt to -45, a 4 week low. II: Bulls 54.4 v 55.6 Bears 20.5 v 20
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