Thursday, January 9, 2014

Morning Charts 01/09/14 SPX /ES

First - never forget that the Fed controls everything. 

Now that we have the important stuff out of the way ...

Let's do a quick minis review - 

Minis 4hr - There is a blue channel, red rising wedge, a pink channel, a green rising wedge, and a pink rising wedge all overthrowing the blue channel off the 2009 lows. The red wedge overthrew the blue channel. The green wedge overthrew the red wedge. The pink wedge overthrew the green wedge. So were in our third formation overthrow sitting near ATHs.

Minis 4hr drill down - Now just looking at the last formation - the pink rising wedge - Pretty clear I think no explanation needed other than it should rise for an E touch to complete the formation. I've had the bull/bear line at 1837 for a couple of weeks now and that's being tested right now. The yellow channel was a bit of a shot in the dark, but the potential upper resistance is trying to hold here. 1833 resistance was busted.

Minis 30m - two ways of looking at this. First, one can try to see a rising wedge with pink lower support and gray upper resistance that is being overthrown here. This would target near the lower red diagonal near 1817. This works with all the negative divergences and can be technically correct, BUT ... Second, there is a potential inverse HnS or an ascending triangle that both target the 1849 area. These go against the indicators, but 1833 or gray diagonal resistance has been broken. Upper pink and green resistance diagonals lie near the 1860 area.

 You know what the Fed wants and what they can not allow. This lousy thing they call a market can't even retrace 28% of the prior moves now without the Fed freaking out. There is a great chance that upon a potential double top here or the completion of this rising pink wedge the market will finally top (if it has not topped already). 

More to come below.

Have a good day. 

GL and GB!

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