US: Falling momentum

By Colin Twiggs
December 4th, 2012 2:30 a.m. ET (6:30 p.m. AET)

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The S&P 500 weekly chart continues to warn of a primary down-trend, with bearish divergence on 63-day Twiggs Momentum. Reversal of TMO below zero would strengthen the signal. Hardening of positions in fiscal cliff negotiations makes another test of primary support at 1350 seem inevitable. Breakout above 1425 would test resistance at 1475, but declining momentum suggests advance above 1475 is unlikely.

Dow Jones Industrial Average also indicates falling momentum, with breach of the rising trendline. Respect of resistance at 13300 would re-test primary support at 12500. Reversal of 13-week Twiggs Money Flow below zero would indicate rising selling pressure.

* Target calculation: 2400 - ( 2800 - 2400 ) = 2000

Noam Chomsky: "Europe's policies make sense only on one assumption: that the goal is to try and undermine and unravel the welfare state." | EUROPP

Noam Chomsky in an interview with EUROPP editors Stuart A Brown and Chris Gilson:

Europe's policies [austerity during a recession] make sense only on one assumption: that the goal is to try and undermine and unravel the welfare state. And that's almost been said. Mario Draghi, the President of the European Central Bank, had an interview with the Wall Street Journal where he said that the social contract in Europe is dead. He wasn't advocating it, he was describing it, but that's essentially what the policies lead to.......

Chomsky has the cart before the horse. Collapse of welfare states in Europe led to austerity — not the other way round. Joe Hockey had a slightly different take on events in Europe in his April address to the Institute of Economic Affairs:

The Age of Entitlement is over. We should not take this as cause for despair. It is our market based economies which have forced this change on unwilling participants. What we have seen is that the market is mandating policy changes that common sense and years of lectures from small government advocates have failed to achieve.

Reduction of trade barriers and shrinking of the technological advantage enjoyed by developed nations will lead to the inevitable demise of the social contract. Free competition demands efficiency. Countries cannot remain competitive while carrying burdens imposed by a welfare state.
via Five minutes with Noam Chomsky - "Europe's policies make sense only on one assumption: that the goal is to try and undermine and unravel the welfare state." | EUROPP.

More....

Australia: ASX 200 retreats

China: Controlled descent

Asia: India strengthens

Europe: DAX at 7500

Canada: TSX Composite retreat

'Doomsday Plan' For The Fiscal Cliff? | ABC News

Obama Theatrics, Obama Reality - Business Insider

Fiscal Cliff Is Just a Speed Bump on the Road to a Real Crisis | International Liberty

China: Uncertain foundations - FT.com

IMF: Australia's banks need more capital

Ten companies most of S&P 500 Earnings Growth | The Big Picture

Even without U.S. cliff, world economy teeters | Reuters

Why is Australia paying Japanese prices for natural gas?

Ninety-eight percent of the adults in this country are decent, hard-working, honest Americans. It's the other lousy two percent that get all the publicity.
But then — we elected them.

~ Lily Tomlin