As mentioned in last night's report: "There is a possible flip in the week of June 13 which would turn a crisis/disaster pattern to 'government intervention' (without a flip, it could be a week of tragic news stories or a significant negative event)." If we don't get that flip this week, then additional market turmoil (such as we are seeing at the moment) is likely. If we do, we would see evidence of a government intervention such as via Fed talk, reversal in Forex trends, and other stabilizing measures. It would be very unusual for governments to stand by and watch markets unravel day after day without stepping in one way or another. Yet, they are also very concerned with inflation which somewhat limits their options.
MarketMood Indicator is down for today, then up Tuesday, Wednesday, and preliminary for Thursday is also up. Whether that is pointing to a bounce or a big reversal is yet to be seen. For those following CDMS*, it was a preliminary "Intraday Sell" for Monday, it was shifting towards "Daily Sell" last night, and it is now confirmed as a "No Trade" for today.
*Composite Daily Mood Signal