Morning Post 09/20/11, SPX, AAPL

Well, Looks like my warnings Friday about the market 's reaction prior to the FOMC data tomorrow (it was dangerous to short even though Friday 's close was a very tempting set up) was spot on. How can you short into the Fed with their constant risk on positioning and eternal promise of QE? It is insanity.

All eyes everywhere. The EU is in deep shit. No denying that. The biggest news was not the S&P downgrade of Italy and the Euro. Nor was it China's backstabbing of the EU. It was Siemens dumping their French bank and depositing funds directly with the ECB. After all of that one would likely conclude easily a 250 point down DOW day - nope.

If any of you understand this welfare video, please explain it to me. I swipe my EBT. Yes, America is reduced to this, free junk food. Hey, whatever makes the system work and supports corporations - it's allll goooood.


STB is still on the Fed won't ease train till the debt ceiling is raised significantly. Not saying they will not deliver some sort of rhetoric or promise they will though. That is an easy trick to get some levitation for free money (like swiping their EBT). I expect verbiage to be the same (since this has worked so far to stabilize the markets), we will ease if we have to.

30m Comparison chart - Just watch the 200ma. Pay attention to all the diagonal support below the 200ma as well. I showed this yesterday.

SPX Daily - Follow the little arrows on the right. NYMO is falling. Resistance is apparent. TNX not cooperating. Some potential divergences here showing this run is not all that strong. Of course all that can change with one word from the Bernank.

AAPL Weekly - showed this chart late yesterday. Thought it was worth another look - Hard to ignore a wedge like that with yearly divergences even if it is AAPL.

1m Minis referral chart -

GL and GB.