Thursday, June 6, 2013

Morning Charts 06/06/2013 SPX /ES

6/6/6 (2+0+1+3) Could be an interesting day on many fronts. If there is a numerology day that one should be concerned about, this would be one of them.

And for your "warm and cozy" moment this morning - Obama Ramps Up Domestic Surveillance: Secret Court Order Requires Verizon To Hand Over All Call Records On A Daily Basis To NSA… Not sure where this fits into the bigger picture? I mean like there is no way they are just gonna blatantly spy on every American just cause they can. This is America, right? We do have laws and constitutional right, don't we?

On to the lie -

What to make of this correction? It appears that our markets are not at all pleased with the 20% puke fest that the Nikkei has experienced. But things were going so well? "Japanese stocks have just crossed over to the dark-side. After a glorious "well, the market is up, so everything must be great" rally of 85% in six months, the Nikkei 225 is now down over 20% from its highs - signifying a 'bear market'. This is the largest 10-day plunge in 27 months as volume has exploded on the downside."

NIKK Daily - Busting near term support, under the 50dma, just above a large gap, and at the 38% retrace - time for a pause and everyone to catch their breath or is it time for price to truly punish intervention for the falsehood that it is? Just like in the US, BS policies masking the truth will be unveiled. Japan is out of fiscal bullets and stimulus is/has failed. This is a good example of whats coming here so pay close attention.

SPX CPC - Note the VIX, the BPSPX and the four divergences in CPC (black dashed). If the bears can manage to crack that pink downtrend line things could get really ugly.

10SMA Chart - There is only one example on this chart where the 10 has crossed the 20 and it was not followed by a large correction and that was caused by Fukushima. Of course a top soon followed.

Bullish Percent SPX vs. SPX - Really? Irrational exuberance? Stupidity? Insanity?

RUT Daily - Any questions? The Fed's darling is overthrowing a multi-year rising wedge formation. Wedge target is the lower red dashed line, and the HnS target is sub 500. There is also a small HnS at the top here with a neckline at 900.

TNX SPX performance chart - There is a slight dislocation here from the norm. When they correct - markets implode and rates scream higher. That is not a good combination.

And one last chart to put interest rates in perspective -

That's enough for now. As for the markets today, I'll get to them below. I still want 1595, but may have to settle for this. A pop to 1640 could be in the works if Japan quits bleeding and can hype some positive news. Not so sure that can happen.

Have a good day.

GL and GB!

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