Cyprus, now mulling over Plan B, reflects the lack of leadership by developed regions facing fiscal and debt mismanagement. Short-term fixes have been the “easy button," allowing governments and central banks to buy time until the next crisis surfaces. As the former EU head, Jean-Paul Juncker stated upon his retirement this year, “We know what we have to do, we just don’t know how to get re-elected if we do it.” That pretty much sums things up globally. Cyprus has now been given until Monday to either obey EU demands or decide to fall into bankruptcy, which could mean leaving the euro. The latter would be good for the country since being in the euro may be harmful to the country’s economy anyway.
China PMI rose (51.7 vs 50.4) causing stocks to advance there last night. The good news though was quickly undone by the poor German Mfg Index (46.5 vs 47.9), which put the German economy in a contraction. Toss in more poor news from Cyprus and the stage was set for market declines.
Meanwhile, overall U.S. economic data was good: Jobless Claims fell (336K vs 340K exp & prior revised higher to 334K); Flash PMI met expectations (54.9 vs 55 exp & prior 54.3); Existing Home Sales was even-steven (4.98M vs 5M exp & prior 4.94M); Philly Fed Survey was positive (2 vs -1.5 exp & prior -12.5); and, Leading Indicators held ground (.5% vs .6% exp & prior .5%).
Aside from the Cyprus shadow on markets, previous poor earnings reports from heavyweights FedEx (FDX) and Oracle (ORCL) lingered--FDX especially since its condition best reflects a declining global economic environment. Piling on Thursday, FBR Capital Markets also downgraded Cisco (CSCO) to "market underperform" from "market perform," lowering the stock over 4%.
Stocks fell sharply late in the trading session from a combination of weak eurozone data (IEV), Cyprus news, and tech stocks (XLK). Financials (XLF) continued to weaken fearing Cyprus contagion. In “risk off” fashion, bond (TLT) prices were higher, the dollar (UUP) was flat and gold (GLD) was higher.
Volume was about average by recent measures and breadth per the WSJ was negative.

You can follow our pithy comments on twitter and become a fan of ETF Digest on facebook.
SPY 5 MINUTE

.SPX WEEKLY

INDU WEEKLY

RUT WEEKLY

QQQ WEEKLY

ORCL WEEKLY

IGV WEEKLY

CSCO WEEKLY

IGN WEEKLY

FDX WEEKLY

IYT WEEKLY

XLF WEEKLY

IBB WEEKLY

SOXX WEEKLY

UUP WEEKLY

FXE WEEKLY

FXY WEEKLY

GLD WEEKLY

GDX WEEKLY

SLV WEEKLY

JJC WEEKLY

DBC WEEKLY

EFA WEEKLY

EZU WEEKLY

EEM WEEKLY

EWJ WEEKLY

$NYMO

The NYMO
is a market breadth indicator that is based on the difference between
the number of advancing and declining issues on the NYSE. When readings
are +60/-60 markets are extended short-term.
$NYSI

The McClellan Summation Index
is a long-term version of the McClellan Oscillator. It is a market
breadth indicator, and interpretation is similar to that of the
McClellan Oscillator, except that it is more suited to major trends. I
believe readings of +1000/-1000 reveal markets as much extended.
$VIX

The VIX is a widely used measure of market risk and is often referred to as the "investor fear gauge". Our own interpretation is highlighted in the chart above. The VIX measures the level of put option activity over a 30-day period. Greater buying of put options (protection) causes the index to rise.
It may be that a larger correction is in order given that some important global powers are struggling. Money printing by itself isn’t cure-all for what ails us.
Friday not much is happening beyond Cyprus tensions—how fun!
Let’s see what happens.
Is it true Sir Bob G is now on the board of monstrousanto? Maybe he will 'feed' the world after all. maybe not! Time for another Band Aid.
Where's Bono? wonder if he has found what he's looking for! or not?
The market is fine. Cyprus is a long ways away from us.
As soon as I (win the lottery)... figure out my finances, stop drinking beer, smoking, eating, and paying for electricity every month I believe things will be OK.
Yeah...You also got to cut out paying rent and/or paying those Property Taxes and Insurance (assuming that you have paid off your mortgage). Don't forget to eliminate those Automobile Payments while you are at it. Things are going to turn out just fine.
Yeah things will be okay after the Goverment confiscates everything that you own. They are the wisest of the wise, after all, and are only looking out for what is best for you.
LOL
don't forget 'breathing' and having a daily movement
Great article and lots of work put in to produce it. Go have a beer on Joe moneybags. You got this, right Joe?
Good article, thanks.
You've obviously been correctly long for a while, but cognizant of an over-bought condition. What will get you out of the longs, the breaking of the lower uptrend channels, negative divergences, or a signal from certain market sectors?
Great charts, and bravo for the common sense above:
« ... Cyprus has now been given until Monday to either obey EU demands or decide to fall into bankruptcy, which could mean leaving the euro. The latter would be good for the country since being in the euro may be harmful to the country’s economy anyway. »
Too many of the cheese-heads - even on Zero Hedge! - try to pretend there is something desirable about these southern countries staying in the euro and have their people choked to death like has been happening in Greece.
Indeed I pray for these southern European countries to be released from euro-bondage soon. Who knows, might even start happening next week.
---
Can't help the feeling that everything Cyprus does or doesn't do now, is being scripted by the Russians who have their tens of billions in Cyprus ...
If the decision is to call the bluff and have Cyprus default and blow up the depositors, that might be Russia intentionally torpedoing the EU banking system that tried to confiscate their money
As for the Russian deposits which would be lost, they can just earn that back by jacking up the Gazprom gas prices to Europe the next few winters ... teaching the EU a lesson might be more important at the moment
Ah yes, they evil rich Russians. So what exactly is their complicity in the Cyprus bank’s failure? I understood that the main reason that these banks were in such bad shape was their investments in Greece financials. Or is it just part of the “progressive” thought process that when things go bad, it’s the wealthy who should pay their “fare” share.
LOL : http://flic.kr/p/e4NX4D
"They" would take it all if "they" could get away with it! MF'er's.
Well put BGIB, thank you.
Do you you think they are pretending when the Russian folks are making statements like this, or does this matter?
"Unbowed by the misery they have inflicted upon the entire continent, however, and in spite of Russian warnings, European Union officials hardened their stance against Cyprus today by announcing that if the Cypriot government did not allow the raiding of private bank accounts by Monday they would be forced to destroy their banks, which remain closed for the seventh straight day and have no signs of opening soon."
Hardened? Raiding? Destroy? Sounds violent, and terroristic, no?
"It would be better for the government of Cyprus to default outright on some of its obligations rather than to seize part of the savings of the proverbial widows and orphans, as well as retirees or those approaching retirement – while purporting to levy a tax. This is especially true in a country that has deposit insurance for up to €100,000, in order to protect small savers."
http://www.eutimes.net/2013/03/russian-leader-warns-get-all-money-out-of...
This sure does not sound like positive news.
...rock and a hard place...sucks for them
"never short a dull market." obviously we're long overdue for a correction...could the market decide to go up 500 points from here instead? Yep. Europe and Cyprus if what I'm surmising about is in fact correct (this is a professional hit..and there will be no way to ever prove this of course) then this will spread some real fear...especially in Italy...about the bank simply taking your money. If that's a nasty double dip I see going on over there..."it's every man for himself." I can paint a lot of really scary scenarios both over there and obviously the Middle East. I thought the President and Israel both did an exceptional job over there. I also think POTUS is really "getting his foreign policy groove" working. He's got THE A team working for him right now...if he wants to start his education on how this stuff really gets played I would recommend the movie 7 days about the Cuban Missile Crisis. "that's just your opening act" in a FAR from kabuki theater going on Over There. My recommendation would be for him to not be afraid of making some calls himself. We really havn't made many enemies in the world contrary to popular opinion oh these many years. The problem of course is on the home front...ccontrary to popular view the world does not like to see America suffer. Fire up the white paper people and start getting some concise and direct thinking...and then express it. They don't call it "the bully pulpit" for nothing.
Are you serious?
You still 'vote' don't you?