Thursday, May 24, 2012

Morning Chartapalooza 05/24/12 $SPX $ES

Cause the news is horroble across the board and the markets are obviously in 'anticipate more easing' mode (price should be down three times what is is up right now) I'm just gonna sling some charts at you this morning. If you have any questions about 'easing mode' see the AD last night. that will explain everything. I do recommend you read Welcome To Chez Central Planner: Presenting The Complete Fed/ECB Response Menu | ZeroHedge if you have any interest in understanding the plethora of ways the Fed/ECB can try and wiggle their way out of most any situation (till they can't).

Minis 30m - Backtesting the yellow wedge and meeting green resistance off the 1413 top (not anywhere near the 1420 resistance diag that is near 1394). The red diagonal that is acting as a support area here is the old upper market resistance diag off the 2007 and 2011 tops. The backtest occurring here is a major support play and if this goes significantly then real downside action will be coming. Upside 1341 is my first major resistance.

Dollar - Yellow LT channel support held and the rally is on channeling up thru LT resistance near $81 in a real power play. It is amazing a worthless piece of paper (fiat) is something that gains strength in the most dire times. Just follow the greeen channel for now. I'll do a dollar post next week or you can see Shanky Does the Dollar for a more historical perspective. 

EUR/USD - Pink falling channel/wedge cracking MAJOR support is a MAJOR deal. The busted green support goes back to the '02 lows. The 1.25 area has been major support/resistance since '98. This crack is a big big deal. Most know I have had a 1.16 target for well over a year now. Sadly if it gets there that may not even stop it. I'll do a new EUR/USD post next week. See Shanky Does the EUR/USD for a more historical perspective.

Oil - For those wondering why I have been looking to $85 for some time now here is your reason. The green support diag is off the '08 lows and the $85 number is key for several other economic reasons. $74 is major s/r going back to '05. Watch that level carefully if things start to get fugly.

Gold - Pink channel down thru yellow and white LT support is a major breakdown technically that people don't want to see. 1523 s/r matches the December lows after the crash off the 1927 top. This is a pretty major support point.

Silver - After spiking to near $50 the fall has been brutal, but there is hope for the silver bulls here as yellow support off the '08 lows is mere points away now. Green channel resistance and yellow support are pinching price here and something will have to give between now and August. Throw in $27.50 support and you get a real sticking point for this PM. Note that gold has already taken out this yellow LT support.

UST 10yr  - This chart really says it all - No commentary is necessary.

SPX Holiday Chart - How does the SPX perform rolling into a holiday weekend? Well here is your road map. Draw your own conclusions. Basically it appears on the surface that price more than likely will ramp into a holiday weekend during a bull run and there is no effect in a bear run. Memorial day, Labor Day, 4th of July and Christmas are on the chart.

The sad news is I blew up my FOMC meeting chart yesterday and will have to rebuild that beauty. Expect to see that soon.

GL and GB!

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