Friday, January 25, 2013

Morning Charts 01/25/13 SPX /ES

Not much to say other than the markets are at post crash highs, the Fed's balance sheet just topped $3 trillion and the most recent Gallup poll has Americans most negative on the nation and economy in 30 years. Just more things that don't add up folks.

I'm paying little attention to the LTRO payback and believe this is little more than a dog and pony show trying to illustrate how well "all is well". When you put too much lipstick on the pig you can take some off without damaging the illusion. I have a feeling that this will be little more than a reshuffling of the deck. If you think Spain or Greek (or certain Italian) banks can pay back any of the LTRO funds  and survive you are mistaken. See Moody's warning here. Unfortunately Egan Jones will not be able to provide the only unbiased opinion on this subject for another 18 months (which may be a great time table come to think of it).

SPX Daily - They have pushed cash over 1500 and the overthrow to the max. I either look for a reversal near here or for a pull back and then one last bull trap run to the ultimate double top setting unmistakable divergences that market forces will not be able to ignore.

Minis 30m - Green channel into upper blue LT channel resistance. Overthrowing pink upper channel resistance.

Minis Daily - Kinda nasty looking, but this is all the stuff I'm following. Note the big blue channel up that runs the length of the chart and the tiny little green channel in the upper right (charted above) that is our current position.

Have a good weekend.

GL and GB!

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