Not much to say. Pressure on the markets is evident. Overbought? Shuh, the daily chart is now screaming sell me, but POMO persists and so do the HFT bots. The promise of QEII and the elections should keep things in check the rest of this week. One more POMO day tomorrow and some large economic numbers remain (Jobs and GDP) this week.
Economic Calendar - Loaded with data all week. Please check the calendar.
Earnings Calendar - XOM before the bell tomorrow. Earnings info here at MarketWatch Earnings Summary HERE.
Pivot Points -
POMO Schedule - NO POMO today! There are only 3 POMOs left and the next schedule will be released on the 10th.
Shanky's Dark Side - Where I call all the intraday action.
SPX daily - Divergences are clear and so is the wedge that is clearly consolidating and ending.
SPX 60m - Closer look at the wedge ending and consolidating with diverging indicators. The possible HnS formation with the blue neckline is something I am keeping an eye on. Got GAPS?
Not going out on any limbs today as I simply have to wait on QEII and the elections to come next week. The markets want to pull back and there is no POMO today. Looking for the wedge to break at the open, but not getting to excited about any massive breakdown quite yet. I suspect the top is set at this point. Possibly some weakness to the 65 area and then a move up to the red diagonal to set the right shoulder on the QEII announcement. After that we can then talk about a big breakdown.
Now about that big breakdown, will it only be a corrective or the real thing? At this time I have no clue and the form of the fall will be the tell. we're either in P2 (still going up) or P3 (still crashing). Given the extension of this move in time and price I'm leaning to still in P2 bull phase. Form, form, form of the fall will tell us what is happening. Market manipulation and the lack of the market's ability to take any of this fanatically bad news seriously (cause all of retail has abandoned the market and bots are running the show now) is quite astounding. As I have been saying for a long long time, it is going to take a serious event or catalyst to rip this market form "their" control. The markets are all they have left between then and anarchy. What you are seeing in France will be here in 2011.
Hang in there. Another week or 10 days and we'll know what to do. GL and have a great day.