What Recovery?

source: eurostat.ec.europa.eu

It was thoughtful of eurostat to include the US in their chart.  Funny, that’s not the chart one would picture based on the MSM’s steady drumbeat of “recovery!”

Germany, which had previously taken an ambivalent attitude about the soaring euro, might change its tune following its worst GDP print since Q408.  The main culprit?  Exports, which fell 15.4% from November – the worst monthly decline since 2007 – and 5.7% YoY.  Straight from the Bundesbank:

Housing figures for Q4 should be out soon, but look for a continuation of the slide.

A falling euro might increase exports, but make oil even more expensive – the same energy/export conundrum in which Japan finds itself.

UPDATE:  12:20 PM

SPX continues to move sideways.  The H&S pattern completed yesterday busted, completed again, busted, and is working on completing a third time.  This is a very ugly pattern, with hardly anything normal about it — especially the 3 right shoulders.

It should have already paid off yesterday with a trip down to 1511ish.  The red channel I drew yesterday is holding nicely so far, but a departure to the downside this morning was quickly erased.  It even fell through the larger red channel midline but rebounded.

Clearly, the bulls are trying valiantly to defend the 1520 level.  But, can they?

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