What a way to start the Xmas ramp with a 44 point SPX move off the lows (biggest day of year) and back that up with the potential open this morning. See, Santa does exist.
The big news - other than Grandma doing her part yesterday - Swiss Central Bank Plunges Into NIRP, Sends Deposit Rates Negative, Scrambles Against Safe-Haven Capital Flight - Negative interest rates are good? On what planet? Maybe on the one where financial systems are flailing out of control as the global economy crashes to the ground. Seriously - they are pitching this as like really good news.
On to the lie -
SPX 5m - There could be a few more pos divs drawn here, but SC ran out of green ink. Bottom line is this chart and the 1980 area I was harping on worked really well the past week. Now that blue dashed s/r diagonal has been crossed and the 38% retracement is going to get abused this morning. There is no way the Fed was going to let price fall into that massive black hole sub 1980. I'm surprised they let it fall below 25 personally. Typical power move for the FED, and you should expect something similar up around 62% in the 2030's. STB is curious to see what happens at the 2025 area (my initial first target).
SPX Daily - Fall to set a point to set lower diagonal support for a rising wedge for the ramp into Xmas and EOY. Been saying that for some time now. See red rising wedge and what I was looking for. Now, they have to follow through here, but what I was looking for may be about to materialize. Look at the amazing run in the dollar on this chart, and note the last low and this low of TNX. 2038 area is the STB bull/bear line.
More to come below.
Have a good day.
GL and GB!