For the July 30th T2108 Update I described a “quiet bearish divergence” between a plunging T2108 and an S&P 500 (SPY) that was barely budging off all-time highs.

Five days cannot tell you much about the future direction of market-based securities or their respective asset classes. They may, however, be able to provide insight into the more pressing issues or lingering worries on the minds of investors.

The S&P 500 (SPY) closed down 0.55% after a fade from a slightly higher open. T2108 closed up a bit at 23.1%. Until the “quiet” bearish divergence that ushered in the current sell-off.

Nearly 7% on a country ETF is enough. Not being the world’s most accomplished or strongest bear trader I think I’d better not look a gift Ponzi Scheme in the face.

I was ready to call T2108 oversold FINALLY, but a late creep into the close brought T2108 off its lows and right to 20%, the threshold for oversold territory.

How perfectly did this crap rise to test the breakdown and then drop? My stop as noted last week was a rise above 43, so I still hold Spain (Europe’s version of junk bonds) short, along with the chunk of SPY also noted.