Monday, May 5, 2014

Morning Charts 05/05/14 SPX /es

Ukraine and a lot of Fed speak this week should be the main market movers. I suspect front running may be to the downside as nervous markets begin to weigh in price. There is all sorts of major support inside this falling blue channel we've been monitoring for a couple of months now. We've discussed this daily for quite some time. My position is they must ramp it here or they risk a serious move south that could force the end of taper and expansion of QE to constitute the last desperate act to save the market. Too early for a massive move south just yet, but a catalyst can happen at any moment and send markets flashing. Bonds are telling the tale and gold is as well.

On to the lie -

Minis 4hr - Looking at the bigger picture, the falling blue channel, STB's red line of death just below along with major support thick blue, yellow and red dashed. Sub 1830 and it could very well be game on.

Minis 60m - Rising green wedge running into upper blue falling channel resistance ran into a brick wall and price is now challenging green support and 1866 s/r. Failure here should not be an option for the Fed, but it may be actually out of their control as momo swings to the bears side. That 1874 - 78 resistance range I spoke os for the last week and a half may have done its job.

Minis 15m - A closer look at just how close we are to the STB red diagonal of death. 1853 is critical now.

SPX Daily - Just absolutely nasty. Ready for a major move south if they can't generate another overthrow of the negative divergences.

More to come below.

Enjoy the week,

GL and GB!

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