Morning Market Summary and Charts - 04/20/12 #SPX $ES

Let's make it simple since it is a Friday morning. I have for months been telling you patience, form and follow the Fed. I firmly believe that the markets are no longer independent and function solely as a tool of the Fed, treasury and Wall St. to serve their greed. For this reason you must ditch all theoretical and independent thoughts and analysis.

All you can reliably do these days is follow the easing. that means when the IMF meets and begs for money this weekend (remember Paulson's 2008 threat - yup, here we go again), the G20/7 meeting, the EBS and then the Fed meet on the 24th and 25th. Don't forget that AAPL announces Tuesday. For this reason for the past couple of weeks I have been pointing to the 24th and 25 as key dates and the markets have not broken pink support and have held in anticipation of the results of these meetings.



The pause is on. We'll all have a much more clear picture by mid week next week.  I've been calling for 1341 and still like that. Beyond that and if things go as they should (which is exactly what I warned against above - things go as the Fed wants not as they should) I still like the 15 to 20% puke pullback to possibly as low as 1170.

There are so many questions, mainly can the Fed allow another fall in an election year? This I do not know the answer to.

Minis 60m - the channel along LT pink support (off November lows) and 1386 resistance. This appears to have the potential to be a right shoulder with a 1290 target.

Minis 15m - A closer view of the important levels you need to know. STB has been telling you about that pink diag as the last line in the sand since the 1419 top. That is IT. then 1341 is the next key area.

SPX 60m - RS a formin or the move to 1341 to complete the head?

FPMC Meeting Chart - My favorite chart. May not work to a T this time but you still need to know the relevance of FOMC meetings that are very apparent as shown on this chart.

Thanks for all your support and great commentary this week. Best wishes to RC on his tour to win his senate campaign. Have a great weekend.

GL and GB!