Watch the night go up in smoke
--Def Leppard
The SPX has now retraced about 38% of its move from the March 2009 lows to the summer 2011 highs. If we don't hold here, a 50% retracement equates to, interestingly enough, about 1025. A 61% retracement works to 940ish.
The 'canary in the coalmine' DAX has already broken thru the 50% retracement barrier.
Why should the German market serve as the canary in the coalmine? Because Germany holds the keys to any resolution of the EU situation. Essentially, Germans must figure out whether they're willing to bail out the rest of Europe.
Given the recent century of Continental history, it appears that investors are increasingly having trouble seeing that happening.
position in SPX
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
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The DJ STOXX euro zone banks index of 32 member stocks has a combined worth of $340 billion.
The index is down nearly a third since July, and euro-zone banks have lost nearly three-fourths of their value since May 2007.
Apple’s market capitalization is $340 billion.
~Reuters
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