Slight positive bias but news trump technicals

Moe-bama, Nancy Curl-osi, "Larry" Reid

Nyuk nyuk nyuk

Definitely no wise guys here. I'm appalled beyond belief over the antics coming out of Washington the past week from Bo, Larry, and Nancy. It's just too bad there weren't four Stooges though, because Boehner deserves a spot in there too. Not to mention the rest of the 535 clowns down there who have the affrontery to call themselves "representatives".  Have these people no shame?

Memo to Emperor Nerobama: stop fiddling around and start being a leader. It's just disgusting beyond words.

Meanwhile on Wall St.

The market ended lower today pretty much as I expected with the Dow down 88 points after a big gap down at the open. The carnage was all over in the first 60 seconds of trading. There was no way to profit from this unless you had gone short last Friday. I suppose the subsequent retracement off the lows provided some opportunity for the day traders, but I saw none of that.

ES daily, 7/25/11

For tomorrow, I think the clues come from the S&P futures. ES is up almost a quarter percent right now at 1 AM EDT.Two things are evident in this daily chart: first, today's sad action did not take us outside the ascending regression trend channel from July 18th. Second, today's candle formed a hammer. These are both bullish signs. And tonight's action (ie. Monday evening's overnight into Tuesday) is also forming a hammer.  For tomorrow, watch the daily pivot, now at 1331.92.  We're now above that level, thanks to a combination of a minor late evening rally and the fact that the pivot is now lower.  Staying above this number will be bullish.

Meanwhile the VIX put in a big gap-up doji that's looking a lot like a bearish evening star. And J-Trader's Buy/Sell model is stubbornly hanging on to its bullish bias. That didn't work out so well today, but the market is firmly in news driven mode now and will remain so until we get past this latest comedy routine coming from the Three Washington Stooges.

Although my personal bias is to the up side for tomorrow (Tuesday), I am simply standing aside until all this debt ceiling nonsense is resolved. I hereby declare summer vacation until August 3rd. Anyone for Pina Colada?  That's all, she wrote.