Thursday, July 31, 2014

Morning Charts 7/31/2014 SPX /es

OK, I finally ate at CMG. LS1 and 2 both said never again. I was not impressed at all. IMO, just another farce on the face of the market. How? I asked myself 20 times while eating and after experiencing that? Why? How is this place all the rage? NFW.

OK, so FOMC was a dud. GDP was a joke. Congress is about to go on vacation. I think things are about to get really interesting. I think Obummer is about to go ape shit with executive orders. Everything from now till November is going to be election related. Not like there are not enough wars going around the globe, were bout to have 50 little ones all across the nation as the election season rings. That's not to mention the impeachment discussions that should heat up after O continues to seal his legacy as the worst president ever (by like miles and miles).  I know, I must be a racist for saying such a thing. I'm positive everyone here thinks I hate him only cause he's half black. 

Bottom line is the next few months are going to change things dramatically. Tensions are going to boil over here. I'm sure things overseas will escalate. This will lead us further down the path to the end. I also think something big is coming sooner than later regarding the dollar, and when that happens war comes very soon after. The groundwork is being laid. They see it coming. They will have to do anything to protect WRC status, and war will be the only answer left. 

On to the lie - 

SPX Daily - You can see the rising blue wedge breaking down that I've been discussing. Double neg divs all over the place. BB width is very narrow which screams coming real volatility. You can also see the massive supportless hole below all the way down to 1900. There is more support on cash than there is on the minis. The overthrow of the overthrow is breaking down. Theoretically this is like the ultimate spot of spots to want to take a shot at a short. It should not get any better than this - period. But, alas, this is not your father's market. Nothing is real, so nothing can be trusted. One trend that I've pointed out before is that price after the intitial overthrow has a high tendency to backtest the point of the last overthrow, in this case near 1900, before moving higher. Not guaranteed, but it should be a high probability. The narrowing BB's also tend to lead to the larger turns as well.

I like down, at least till the Fed stops price right before the sell stop level. Could this lead to more? Of course. Any move south now has the chance on inducing real fear. The charts are more than ready, but is the Fed?

More to come below. 

Have a good day. 

GL and GB!

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