You think we could call in Dr. Death and have him just give the nation a shot and put us all out of our misery? Extend and pretend continues.
Economic Calendar - Existing homes at 10 and Timmmaaayyy speaks at 10. A few auctions and the Yellen speaks at 3.
Index Pivot Points - This is a new feature to the morning post. Use it.
We may get approval for socialized medicine today! Yippie!!!
I'm gonna back it up as I do every now and then to give you the big picture using the E-mini (S&P futures).
Weekly chart - P2 or the bull market run. Call it what you like. It is a wedge that is ending (between the green lines). These are bearish formations indicating reversal. The sky blue diagonal trendline is the bear market top line. We see several things here. 1) The market broke thru the top trendline resistance in November. 2) After completing a nice 23.6% retracement of the bull run it backtested the top of the trendline in February. 3) It has moved to set a higher high and is approaching the top resistance line of the bull market again. 4) There is a possible divergence to price being set by RSI and MACD indicating a possible top is near. 5) The minis have completed a 50% retracement of the grand fall. 1224 is the max I can see this run going.
Daily chart - Here is the complete bull run or P2 corrective. The most important things to notice are the overbought indicators on this daily chart. The bear cross on S Sto, the MACD histogram is declining and the recent hard dip in RSI.Notice the fibonacci retracements as potential targets for a fall from here. The higher we go, the greater the relative fall we will have.
The conclusion is the same as it has been for the past few weeks. The weekly chart is not ready to turn, but the dailys are poised to turn at any moment. You all know I am a permabear, but I have done a good job keeping you on the right side of the trade leaning to the upside in the face of extreme overboughtness. Bottom line is that it is a totally controlled market. It is a rigged casino that is playing with house money (that is your future tax liabilities) that is only one roll of the dice from disaster. The GS bots are playing pong with the MS and JPM bots. we can not compete. We just have to ride the tide. I expect reversal very soon. I think it will happen near a close or overnight. The China deficit, Greece or the other PIIGS, or one of a plethora of other problems will rear it's head and the market will react. It is waaaaaay to quiet now. I don't like it. That divergence in the daily RSI might say a near term top happens this week.
GL out there. Lean long, but have your finger on the shortie trigger.