Tuesday, May 4, 2010

SPX Charts

UPDATE: No post tonight - Little Shanky has a baseball game.

Here is an updated chart. SPX Daily Indicator Chart shows possibly more room to fall.

CNBS of course has two bulls on talking the market up. Simply amazing that in the face of this crisis and the DOW down 216 thrashing technicals they continue to promote the Ponzi. Remember, these folks pumping the market are the multi-million (or billion) money managers that need for you to stay in so they can get out. they also need to keep you in the market so they can make fees and pay for that third house in the Hamptons and the 12th BMW for their mistress.These suckers actually think that the USA is in a recovery and that global financial problems will work themselves out. No matter about the marked to fantasy, you just gotta say WTF.

SPX 30m - I think the PPT stepped in where they had to. Really below 1170 is a vast hole to 1110. Taking out the 1175 low was a big deal. For those of you that had been asking about the impending impulsive sell off I had been mentioning the possibility of, this is what I was talking about. Actually this should only be the beginning of it. If the count has this as 1 of 3, then just wait for 3 of 3. This was not squat. A corrective then total dump should be in order. My 1152 target will not be near enough for a complete structure if the count is right and this fall has cinder blocks tied to it's ankles.

I will play it as the indicators tell me to with the wave counts as a secondary or confirming my thoughts. No buy signals yet, and not sure one will come today. It really looks like the trend has changed especially if the daily RSI can remain and close below the 50 line.  It is oversold and the key corrective buy point should be delivered with a nice divergence across several indicators below, but they are not in sight quite yet. I would not recommend scalping the buy cause it may be brief and you do not want to get stuck long with a possible 3 down coming. The green box at the 38% retracement near 1184 would be my target for the corrective at this time. If not that, then the backtest of the triangle support near 92 would be good. It looks like a 1 of 3 has possibly completed and the 2 corrective is working now. I'm not buying the H&S pattern some are calling, but I can't actually dismiss it either. Look for a retrace of some sort and then possibly some more severe downside. One small problem is the island top that the SPX left on the 1m time frame near 1197. For some reason I can not commit to total collapse. I believe I have been conditioned to always think Ponzi manipulation first then what I see second. Just have a plan and always use stops. GL!