OK lets see the good and the bad. Of course the good is the bad in this case since I want this puppy to just puke all over its self.
The good:
1) 851 to 857 is the retracement zone off the 875 top and its at 850.
2) At this time the 50dma is at 850 sitting on the candle holding it back.
3) Resistance area above from 855 to 858.
4) SPX is falling out of a massive diagonal that has a target line (this week) around 810.
5) There are three gaps reachable and hopefully the one at 768 is what this market wants (I'll leave the ultimate gap prize out of the equation for now).
6) The retracemant zone for the whole climb off the bottom is 771 to 746.
7) The daily indicators are all overbought and at extremes.
8) SPXA50 is out of hand.
9) CPC is just a little bullish.
10) SPX set a lower low yesterday.
11 - 1011) We have a few problems with our economy.
1012) California (it is its own economy)
The bad:
1) SPX has broken back above the BB20ma and the 10ma.
1a) The 100ma is now support again.
1b) Look at the 10ma turn at the 100.
2) The 10ma is now back above the BB 20ma.
3) Timmaaaay.
4) CNBS.
5) GS and all the former (?) GS employees running the show.
6) The 60m indicators are bulish.
7) The dailys appear to be whipsawing (AGAIN).
8) The weeklys might have to top out to end this run.
9) SPX is in P2 - S135, Uner and other P1'ers might as well hang it up.
10) SEC.
11) The FED and Treasury and YOUR never ending willingness to supply them with your tax dollars to rescue the banks that are "well capitalized".
12) Creative accounting and analysts.
13) Ratings agencies.
14) Greed.
15) We may need a possible backtest of the diagonal.
16) A new larger diagonal or upwards channel may have formed with the last low.
That is enough for now. Bears, while you may be fundamentally right (WE ARE), the deck is stacked against you. Welcome to the Land of OZ where the Emerald City is being bailed out and there is nothing you can do to control the man behind the curtain. P3 will be here for our vindication and the pain will be great. I just hope we all make enough money to survive the impending doom. One more suggestion - I'd begin stashing some of your cash at home (I'll mention a weapons stash later this year in this spot cause the dollar may not be worth anything). These "well capitalized" institutions may not be able to cash your pay check this time next year.
Indicators have turned. Nuff said.
ReplyDeleteTimmy doesn't know squat. He LOST credibility today because when the banks come begging again, Congress is gonna flip them the bird and Timmy will be stuck.
The banks are bleeding and TARP is tapped out, already.
Timmy did stick it on the chopping block. Question - does this tip their hand that the stress tests will be OK? (at least for the largest banks). They lose some juice if so IMO. That would have been a big announcement and we all know the answer now. I guess no earnings trough yet. This may be a slow bleed. It all comes crashing down later this year or next IMO.
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