Morning Market Summary and Charts 05/07/12 #SPX $ES

Well, I guess a change in leadership is not always welcomed. Hey, look at what we got a little over three years ago. Our move to socialism has proven to be nothing but a spending spree, job loss ridden, freedom stealing and exponentially crony run government that serves the corporate elite. The markets don't like it all that much when their elitists insider crony system loses its pawns. I'm pretty sure that The Fed, ECB and the BIS are pretty much shitting in their pants right now and that's not because they got hold of some bad Mexican food over the holiday weekend.

We've discussed for a long long time that Greece is nothing but a (like AIG after TARP funded our banks) conduit to funnel bailouts thru to the EU banks. So, if Greece changes their stance, leaves the EU and tells the elites to go F off, the whole system crashes and the derivative dominoes start falling.

What about France? Sadly the Merkosy era has ended. What happens when a three legged stool loses a leg? Not good is it? The markets expressed their displeasure last night in the results of these elections.



So, the only question now is how long do we have to wait for the Fed to start discussing QE3 or for the EU to get to the next LTRO? That is how the game is played and stimulus is the only thing that matters.

SPX Monthly Cycle Chart - This is a monthly chart. It is nasty weak. It is at a cycle high. You have been warned. They may be able to keep it propped up a while longer, but that red box should come into play.

SPX 60m - Oversold right now. You see the Head and Shoulders I have been watching for quite some time (actually this is the top of a multiple HnS scenario (about 4 left shoulders exist). The minis hit 1342 (my target was 1341) last night, but the bulls (crony POS PPT wielding capitalists) have rallied to stick save the open thus far.

Bullish Percent - I'm not sure yet it this has to cycle to the low end or not at this time. It should.

Minis - What a stick save by the PPT this morning. The gap is almost closed and the losses minimized. Well done. At least the government is proficient at something. You can see the heavy white line at 1341 I have been looking for. the chart lacks trendlines cause there are no trends at this time.

I'm gonna do an FX post after the open to get to the rest of the charts. Right now all you can do is sit and wait. I want to see what happens to my 30m TRIN chart and my BTFD chart after the open before getting to one sided on direction. Things are VERY weak and team intervention is playing hard right now. I expect plenty of rumors and market elevating mystery action today to stem the tide of selling.

More in the comments below. We're in duck and cover mode now. You know what to do if you see a bright flash.

GL and GB!