China Commerce Minister Yao Jin: China is sending a trade delegation to the US planning to purchase goods and services in the energy and technology sectors as a peace offering to strengthen economic ties. -China Daily

The Euro is trading at the important 1.2 level. The final defense of the euro (the buyer of last resort) is the fed–through their swap lines. There is a massive amount of liqudity due in the next month, which will strain the limits of the fed itself. The Euro faces a scenario best described by the prophetic words of Led Zeppelin.

“If it keeps on rainin levee’s gonna break.”

The Euro broke recent lows today only to be squeezeed higher by the not so invisible hand of manipulation. The manipulation will work until it doesn’t.

At some point the Euro has to be devalued futher. It has no choice.

The trend remains down.

I remain short.

And the beat goes on.

Today the S&P sold off strongly into the close. If recent lows are broken, the next support is at the February lows.

Trader Art: S&P Daily

Despite an attempt to squeeze the Euro higher at the end of last week, the price action remains decidedly bearish.

Trader Art: Euro Futures Daily

I remain short the S&P and the Euro.

News of German regulator intervention is fuel for the fire of my short euro thesis. A view of the weekly chart shows that support is broken. And it’s a long way down.

Trader Art: Euro Weekly