..a date with Bernanke and Chambers

If The FED's stinker of a 'curveball'  wasn't enough,  AMC,  CSCO 's spoken word confirmed waffling demand in their 'JULY' end Q and why the FED shifted in part.   Yes, this is in roundabout way the same July surprise that hit and made the FED do what it did.    Basically, Chambers said what Bernanke didn't to the market.   Wouldn't you have loved to be huddled with them at 'Scores'?

The broad market has gone from about 1110's ES on Tuesday night to a 1073 ES tonight, a whopping 40 handles or so!.  As we said Tuesday night, the FED got a jolt from something in the economy in July and now it's being passed on to the global markets in a rude way.     Also, intertwined is what we said below coming to fruition in just the last 2 days in SMH  space leading the market in a downward spiral.  When they are not talking about the FED, they are talking about the Semi destruction and waffling demand the past 2 days.

Monday night

"..CSCO is important because it`s the first real JULY end report, not June end.  Overall for Nasdaq/tech,  the concern here is still the SMH as noted to start the month..."and Semis down >4% this week, signs of technology softening demand is showing up globally (possible correction in technology coming).  Since, SMH has done nothing the change this view.  Sooner or later, the market may not like more talk of demand softening coming."

A quick look at SMH chart and the 4 low points since April at 25.60ish better hold or a bigger tech correction will likely be underway and last quite a bit.   Also, today the TRANS  which we said need to hold up was down double the DOW, but than, what sector wasn't down 4-5% in this broad market sell off, so it's a wait and see here.

Before today's drubbing,  we highlighted the fact buying the dip is not on the agenda if a 'big one day slide' occurs because buyers will not be willing to step as they always don't this year in such circumstances.   This is basically why we saw a flat- line market from 11am with no hint of buyers stepping up.   Now, that this AMC action has occurred and a low of 1073ES hit so far, we have to look around for battered 'buys' just because we're around 50ma at close.   It would be awesome if a washout occurs in the morning as some are predicting tonight and we crack 50ma,  but we doubt this will occur as it hasn't been the markets forte to do such for the longest time.   Still, the July trendline was destroyed and 20ma also, not like in mid- July when it just trickled underneath the 20ma for a few days before resuming up.   So caution longer term, but we could be in just another summer 'rinse and repeat'  for traders.  Unfortunately, there is little 'crtitical' data  coming until September to possibly reverse things in a big way.