Tuesday, January 26, 2010

Morning Post

Good morning. If you have not contacted your representative (Senate - House) and told him/her not to vote for Ben I encourage you to. If you support Ben, then good for you.

Earnings calendar - Yahoo after hours today.

Economic calendar - The biggie is Consumer confidence at 10:00 looking for 53.5 up from 52.9. (I am not going to comment on the possibilities of revisions to these numbers.

I suggest that you read The Second Phase of the Global Economic Crisis is at our Doorstep.

E - mini daily - The minis have met my 1085 target and the lower green TL well ahead of schedule. The green TL also measures out well for the light gray triangle. The indicators here are bottoming, but they are not quite ready to give a buy signal yet. I'm gonna watch to see if the sky blue channel has some merit and the interaction with this support line. Next stop would be the backtest of the upper (sky blue) bear market top TL.

SPX daily - The indicators are close, but not there yet. So some more weakness is expected, but possibly not much. When it turns I'll prognosticate the pop. Right now I have 1131 as the max, but remember I have not called a top yet. RSI has a hook but is not horribly oversold. MACD has a lot of room till a turn and hist is not reversing yet. S Sto is in the bottoming zone but it can embed. CCI has turned and I would look for a possible divergence to price. ADX might be at a buy point.

SPX 60m - All indicators turning up with possible buy signals, but they can reverse and embed. This chart says the bears need to tread with caution. Retracement levels for a pop can be seen here. Watch those to ma's and the upper BB level as well.

We might have a 5th wave left to complete which should get you to 1085. Not sure if the market goes into hibernation here with the vote for Ben just around the corner and the FOMC meeting tomorrow. If this is a 5 down and then we have the ABC corrective for 2 of 3 you can expect some choppy consolidation trading for the next week. Please remember to contact your representative on the Ben vote one way or the other at the conveniently provided links above.