UPDATE - Seriously, you need to look at what I post on the other site and read thru how I call the day's actions. I have a ton of people that visit here for the overview, but miss the meat of the action and 10x more charts over there, I have posted a ton of charts on The Dark Side today that you should see. Please visit HERE. All of this will be consolidated into one site in a week or so when I launch the new .com site.
Is the game catching up with the Fed? Amazing how China all of a sudden is considering raising rates again and the EU all of a sudden throws a fit looking like they need yet another handout. Looks to me like they had a "clue" as to what was coming and knew they were gonna have to go deep on QEII to keep their fraudulent ways and promise of a levitating market alive. Hey Benny! It's game on. time to put up or shut up on your promise to keep the markets afloat at all costs. You've got $53 BBBig ones to spend over the next eight days. Show me what you are made of bitch. I'm gonna be betting on your team off this bottom against all better judgment and what TA is telling me to do.
The charts now basically mirror the April top. The big difference is in April the fed had ended QEI and was in the experimental phase of actually pulling liquidity from the markets. That is not so this time. A full month of POMO is scheduled with more to follow. The Fed, CME and other agencies have been quelling inflation via margin requirements and RICO suits as well. You know how the water flows and spins faster at the bottom of the toilet? That is where we are. I expect that they'll be able to keep the turd afloat till Xmas, then Mr. Hankey goes down the tubes.
SPX Daily - Should bust the wedge finally and land on the 20ma at 94. Then the Fed will need to make their move. Be watching RSI5 and RSI14 at the 50 lines for support. The similarities between this top and April are nasty.
Cycle lines chart -
Let's see what this fall has in it. I'm thinking larger ABC to 92ish then the fed Steps in. If worse, I get my 75 call and then the Fed steps in. Either way I am on the money with the calls since the 1040 bottom. The promise of QEII ramp to the euphoric pop and now the drop in the last week without POMO. I have raised the drop target from the original 30 to 75 and may have to settle for the low 90's. This is only a 4th wave IMO and the markets ramp will sustain till Xmas then all bets are off. At this time I have an initial target of 1250, but since wave 1 was 120 points at this time I'm willing to go as high as 1310. I am not calling this a top here simply cause of QEII. Without QEII I would be balls deep short here.
GL and have a great weekend.