S&P 500 hesitates

By Colin Twiggs

September 18th, 2012 2:30 a.m. ET (4:30 p.m. AET)

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The S&P 500 hesitated at its upper trend channel. Follow-through below 1460 would indicate a test of the lower channel and support at 1400. Bearish divergence on 21-day Twiggs Money Flow continues to warn of a correction.

* Target calculation: 1420 + ( 1420 - 1280 ) = 1560

Europe's Balance of Payments account shows sizeable portfolio inflow

By Marc Chandler

Look at the turn around in the current account. In the 12-months through July, the euro area recorded a seasonally adjusted cumulative current account surplus of almost 63 bln euros, which is about 0.7% of the region's GDP. The comparable figure in the 12-months through July 2011 was a deficit of a little more than 22 bln euros....

The weakness of the euro area economies has slowed imports and several countries, including some in the periphery, have seen a pick up in exports. Growth differentials probably is the more significant explanation, but we do recognize that from last November through July, the euro had declined about 10% on a trade-weighted basis......

While the current account is intuitively clear, the financial account is surprising. As the euro was falling in July to multi-year lows, talk circulated of capital flight. Yet, the financial account showed a net inflow of 18 bln euros of combined portfolio and direct investment.

Read more at Also Sprach Analyst.

More....

Europe strengthening

Canada: TSX60 wedge

EU Commission Considering Splitting Up Banks to Avoid Future Bailouts - SPIEGEL ONLINE

Earnings Outlook in U.S. Dims as Global Economy Slows - NYTimes.com

2008 Financial Crisis Cost Americans $12.8 Trillion: Better Markets

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