Wednesday, January 7, 2015

Morning Charts 01/07/2015 SPX /es

I'll keep it simple and post this chart from the ZH post - Spot The Ridiculous Outlier - as I said recently (and often) a picture can really put things in perspective. SPX is trying its hardest to catch up with the rest of them, but something or someone is not letting it. How long till natural forces take over? Not sure, but they seem to be trying pretty hard to assert their will. 

On to the lie - 

Focus on the rising wedge that STB called back in October. That's a lot of volatility, and we all know what that should lead to. 

SPX 60m - the bust of lower support is a bit curious, but then again it is not. It isn't because the A-E move completed the requirements for the wedge, and the double negative divergence on TWO supportless holiday driven QE lied about ramps were doomed to fail anyway. It is, because Fed speak has not come to the rescue quite yet. I've walked it down nicely since discussing this for some time now. 2030-40 was initial target after warning at 52 not to BTFD. Then 00 was my lowest target for this fall, so yesterday exceeded my initial expectations (as the last fall did as well). 

SPX Daily- There could possibly still be a little more to go with this fall if you look at the last bottom in correlation to SS and ROC on this chart (top two indicators). Double diagonal support in a double support zone is a likely spot for them to make a stand. If this were to crack - see the dramatic fall last time this support failed to the left. 

SPX Daily - The last rising wedge to end it all? There are not any holiday ramps to come anytime soon to save their ass this time. they may have finally pushed price too far this time. 1960-50 range would be the next stop if this fall were to continue. 

More to come below. 

Have a good day. 

GL and GB!

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