Monday, December 6, 2010

Morning Post, SPX, S&P 500, e-mini

Really looking forward to see how successful the EU bank run will be tomorrow. We'll wake up to some effects of this in the morning. Bailouts galore still continue. Must have stimulus risk on trade is what it is all about. they have not even gone thru the first $100 billion of the $600 of QEII  and they are already talking QEIII. Things are great! Of course there are no worries of a double dip, the friggin economy is a zombie hooked up to the ponzi/fiat machine. It won't double dip, it will just collapse and disintegrate.

Economic Calendar -   Please ALWAYS check the calendar. 

POMO Schedule -  Light POMO day today, but have no fear cause there is still over $500B to go. (We'll most likely have POMO from now to infinity or till the systemic failure that is destined to come.) 

Shanky's Dark Side - Where I call all the intraday action and throw out tons of charts.

Pivot Points -  For what they are worth in this busted market.

AUD/JPY is consolidating and has busted correlation from the SPX. the dollar is backtesting the busted channel support here and is just under it's 80.11 resistance. The EUR/USD has completed a 38% retracement of the last fall and is reversing. So dollar up and EUR down over the weekend, might be time for those trend to reverse.

Minis trading at 1216 support and have been range bound since Thursday between 24 and 16. If 16 cracks 12, 07 and 00 are the major support levels.

I love it when my comparison charts bunch up like this at the top of the bottom. This is the 30m comparison chart. Usually indicates trend change of some sort. The daily comparison still has the financials lagging significantly.
Even the 60m chart is getting overbought now. Of course we have learned that this means nothing in this manipulated POMO driven market (other than POMO is real and effective and dangerous to shorty). Possibly 5 waves completed for 1 of 5. That bull MA cross there should indicate more strength to come.
Bottom line is where we are in the count a period of consolidation should be upon us. SPX support levels are 19, 07 and 00. Don;t think it gets blow any of those. Lot's depends on tomorrow's EU bank boycott. So, let's go with the futures (down 5 here) indicating some sort of turn, and then see how the EU plays out coming into the open tomorrow. Not sure if the bears can get any real momo going vs this POMO/fiat market. Should be a dull to down day.There are 15 (FIFTEEN!) open 1m gaps above the 1173 low. Let's see if some of those can get filled.

Here is something I did on current market levels for the Darkside this AM where I post lots of charts during trading hours.

SPX got within 2 points of it's November high and is trading above the 1219 April high.

DOW is about 60 points off it's November high and is trading above it's 11258 April high.

NASDAQ is trading at it's November high and did take out the November high and is trading well above it's 2535 April high.

RUT has left earth's atmosphere and is in orbit. The index that lagged taking out it's April high 749 has now dusted that and is 18 points above it's November high of 739.

GL and have a great week.

And sadly this sums up where we have evolved to: