Afternoon Delight 05/22/12 - One Nasty Chart

I forgot to post this chart this morning and since it was a hit on Twitter today I thought I would share it here. Pretty simple when the Monthly 10ma crosses the monthly 20ma it is all over. With little over a point separating the two and a stick save since November lows being the only reason they did not cross already, the situation looks dire. Just follow the black circles. Add to that the dire divergences on this monthly chart and you can see how weak price is here. Oh, care to look at the cycles and what on the surface looks to be playing out? Are we at a cycle high? Why yes we are. If that red box is right 2013 and 2014 are gonna be two really nasty years. Of course I think that box would be optimistic as I'm not ruling out a 5 or a 4 handle on the SPX before this is all over.

Monthly LT Cycle Chart -

Let me add this - I'm pretty sure the Fed can see this chart as well.

GL and GB!