So the banks are possibly putting in a double bottom from earlier in the month. As Dr. Brett noted on Monday, a huge momentum day developed and momentum always wanes before price, thus its not surprising that we are having continued, but slowing follow through. The smalls and mids did not look good at all today. I don't believe that large caps will all of a sudden lead. They could after another correction, but they wont just magically start charging forward.

Global markets seem to be stuck in a perpertual cycle. Foreigners by US debt or IOU's with there savings and recycle it back which keeps rates low. This has created a housing bubble that went out of control and is now only starting to cause any real pain. Now because rates are still low, PE is coming out gangbusters and the risk profile is getting higher. see SLM.

The bottom line is cheap credit continues to drive everything and is causing inflation to rise. The ROW, especially China, doesn't care or understand the amount of risk they are forcing the private sector to take in order to get some kind of a return. If rates dont rise, and they could if the dollar becomes an issue shortly, then MA and PE will almost without a doubt wind up in a blowoff housing top. Stock buybacks continue to rise because debt is still so cheap to add. The US and a lot of corporations and consumers are getting the ability to refinance. That will not change the long term outlook of too much debt, it just puts it off longer and adds more leverage until there is an accident.