All change again....Closing long with loss of 8 S&P points...

Two announcements this morning:

1. I closed my long position based on "hope" & some QE-talk, but this morning WSJ leak, which has been known by insider since FOMC meeting makes for the catalyst: Fed split on decision--(click for full story)

2. 40 years after my football career started it ended in tears - yes, it is an important thing for the markets :-) Too many injuries: broken wrist, angle & now shoulder displaced is too much to ask this old body of mine, so this is the end of football for me (soccer)......

Here is a few charts supporting the view - it has too be said that the market is VERY OVERSOLD - but momentum seems to continue on the downside, the Monday action was particular poor considering Monday-Tuesday traditionally is up-days.

My main model: Looks like towards lower end of range: 1040-ish..

The safe benchmark model (designed to keep us in market long & short)

The long-term model. Sell below avg. long above

Otherwise the only REAL ITEM on the agenda this week is meeting in Jackson Hole, where Kansas FED invites all the central bankers & policy makers to a seminar. There is high expectations that Bernanke will give new insight into his & FOMC policy on QE et al.:  FED agenda and text of Bernanke speech

With todays leak it has become apperent that there is major discussion in the FOMC on how to proceed and I note several media carrying the story that instead FOMC should HIKE rates - to secure we do not go into deflation - C'MON that makes no sense, but it all boils down to: Market is UNCERTAIN - and volatility is defined as..... UNCERTAINTY of PATH - hence we will see very nervous market with several doom-and-gloom predictions thrown in....

Good luck,