The Fractal Dimension Index (FDI) on the S&P 500′s hourly chart is flashing an end-of-trend signal (click chart to enlarge):
A low FDI reading is an end-of-trend signal, and a high FDI signals the end of a trading range.
The FDI has been working well lately. At the blue arrows, you can see it flashing an end-of-trend signal after the first leg of the July rally. At the green arrows, it flashed an end-of-trend signal at the top of the second leg.
On the way down in August, it gave an end-of-trend signal after the first leg at the black arrows, and then again just as the bottoming process began at the purple arrows.
As you can see at the red arrow, we currently have the second-lowest reading on the chart. So, the market is more likely than not to consolidate or pull-back here. However, the FDI has room to go lower, so the SPX could vault straight up to 1125 before the first leg of this rally is complete. But the current only-goes-up behavior will likely come to an end on Tuesday or Wednesday.
There’s a run on Kabul Bank, which has been looted by management: WSJ story.
History has shown that banking panics can be triggered by small, obscure banks. But Afghanistan? Who knew they even had banks? Could this bank have any important counter-party relationships?
Not to be a doom-n-gloomer, but the U.S. will bail them out courtesy of the taxpayer.
Once we occupy a country, they then become our responsibility (?).
I shudder to think of the billions squandered in Iraq. But that’s okay, when mandated 401Ks are pushed onto businesses and employees, like health insurance, the Fed will get those funds to squander too.
I can see what’s happening clearly: Social Security, Medicare, and other entitlements will be augmented by private savings and eventually eliminated, although the “taxes” for those programs will continue.
Is there no end to feeding this beast?