UPDATE - I am in cash - they whipsawed the dailys. Wait, no they did not. LOL this is some screwed up stuff.
The Fed and the PPT will have to begin working extended hours these days as pressures, news and reality are catching up at a rapid pace to the fictitious world they have been ruling over this past year. It is ending. The top is possibly in.
(For those of you doubting the existence of the PPT please read Zero Hedge's An Overview Of The Fed's Intervention In Equity Markets Via The Primary Dealer Credit Facility. This is possibly the best blow by blow description of the manipulated crap that is occurring in the equity markets.)
They can't keep the charade up much longer. The sheeple don't know it and don't see it, but they have no say in anything which is really sad. Everything is out of control. I am not sure what other moves they have up their sleeves, but they better keep batting 1,000 or this thing goes BOOM! Folks, they are out of money. They can't find anymore. Be prepared for a whole bunch of last ditch efforts coming very soon to save the market. They may provide temporary reprieve, but the end will happen sooner than later.
The call today is especially tough. Is the ABC complete? Does 5 of C begin here? Does this correction continue as a zig-zag? Is the top in (as I questioned last week)? Does the PPT step it up in the wake of all the bad news? Will the daily indicators whipsaw the shorts into one more squeeze?
Well, it will take a whipsaw to move the daily indicators out of their bearish stance and at this time. I'm speculating one could occur. I am gonna stick with my call from late Friday on Kenny's chat that further downside is coming and add the recommendation that you watch the indicators very closely. The divergences are still set. I can't bet on a whipsaw. I am short (EEV and BGZ), but could exit at any moment.
Keep an eye on the blog this week for updates. If the dailys begin to turn I'll be all over it. I'll also post later today on the perilous place some of the daily indicators are in (between trendlines), thus my worrisome stance against a lot more downside.
The crystal ball dream call is that I think the lower P2 (or bull run) trendline on the SPX and e-minis might get tested or cracked this week. I'm looking at a potential H&S set up (top is in if this is the case) that takes SPX to 975.
SPX Daily - Look at the pink market top trendline and follow it thru the chart.
SPX Daily Drill Down - Drilled down to see the interaction with the pink trendline. Look at the interaction with this line. Price is sitting on it as support. If it cracks the 50ma will pick up price.
/ES Daily - Lower yellow trendline is the bull market support line. The green line is new market support developing (possibly - add to the dream call above - thus a fake out move below support that has everyone go nuts, then stops and PPT comes to play at the green line to set the right shoulder). Gray box is a possible target if the breakdown continues. Something bothering me is the potential higher low set by the minis Friday (added to he potential end of the ABC).