Tuesday, October 8, 2013

Morning Charts 10/08/13 SPX /ES

Someone is getting more worrieder? "the 10/24/13 T-Bill yield has exploded 6bps higher to 22.5bps this morning as it is clear short-term risk of a missed payment is rising fast." from JPY Jolts Stocks To Overnight Highs As T-Bill Yields Explode Higher is about all the commentary I have this morning. Not sure anything more needs to be said.

I think we're gonna start getting some positive news bites that may be beneficial to price. I'm not sure how earnings season could be beneficial. If anything bad earnings news becomes a positive, cause it will drive taper OFF and increase the potential for additional QE .

You may want to check out Is Homeland Security Preparing for the Next Wall Street Collapse?  from Washington's Blog. "If the banks are shutting their doors, and the cash points aren’t working, and people go to Tesco [a grocery chain] and their cards aren’t being accepted, the whole thing will just explode." Didn't we read just yesterday that the banks are starting to stuff the ATM's with 20 to 30% more cash here?

Minis 60m - Falling green wedge into critical red support. Range is narrowing as price consolidates into this inflection point. I'm not so sure an underthrow is possible, because a break of this red support diagonal will be disastrous. Not to say this is not possible, we'll have to see where the stops are blow this point. Right now after the lower low set last night, the broad range is roughly 20 points from 1666 support to the 1687 resistance and the 38% retracement off the top. The Fed knows they pretty much have to hold this line.

Minis 60m - Bottom of the green falling wedge we've been looking at for the past couple of weeks.

SPX Daily - Blue support, like red above, is critical or 1600 or below comes into play and should be quickly.

More to come below. Not much to be motivated about right now. STB waiting on them to make their move. Market reaction should initially be positive, and with this support area here maybe that news comes in the next few days. If not, and support fails, then the scenario looks rather dire.

Have a good day.

GL and GB!

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